Question

Insiders are able to earn abnormal returns on trades in their firms stock. This is a violation of which form of efficiency?
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Answer #1

This is the violation of strong form of efficiency.
Answer: strong form of efficiency.

They are 3 levels of Market efficiency:
1. Strong efficiency: Insider information, fundamental analysis and technical analysis are unless in such a market.
2. Semi- Strong: fundamental analysis and technical analysis are unless in such a market.
3. Weak: technical analysis is unless in such a market.  

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