asked 140k views
2 votes
Jaffe found that stock prices __________ after insiders intensively bought shares and __________ after insiders intensively sold shares.

asked
User Richie
by
7.5k points

1 Answer

3 votes

Answer: increased, decreased

Explanation: The following case relates to insider trading which refers to the situation when some employees of the organisation,having private information regarding the decisions uses that information for gaining profit in the stock market by treading their company's stock.

When the insiders extensively bought the stock which means the company is going to make a decision from which the stock price is gonna rise and vice versa.

answered
User Miette
by
7.6k points
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