Research Suggests Company Insiders Earn Abnormal Returns on Their Stock

Research suggests company insiders earn abnormal returns on their stock transactions. What does this research mean for the efficient market hypothesis (EMH) ?

A) Insider trading has nothing to do with the EMH.
B) Profitable insider trading contradicts all forms of the EMH.
C) Profitable insider trading contradicts only the weak form of the EMH.
D) Profitable insider trading contradicts only the strong form of the EMH

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free