10 points Save Answer QUESTION 4 There are regulations that

10 points Save Answer QUESTION 4 There are regulations that prohibit \"insider trading,\" which is the use of nonpublic information about a security to eam abnormal profits from trading that security. Which form of market efficiency would make these laws unnecessary? Explain why For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). Click Save and Submit to save and submit. Click Save All Answers to save all answers. Save All Answers Save and Submit Type here to search Page 1 of 1

Solution

Strong form of market efficiency will make insider trading laws unnecessary because this form of efficiency believes that share prices reflect all available public and private information. So no investor can use insider private information and earn alpha returns . so if that\'s the case that all private information gets absorbed in stock price and no one can use it before for advantage , so no insider trading prohibition laws are required.