Post by xandra on Oct 18, 2015 7:28:14 GMT -5
Hi,
I am under the impression that if i have private material information of a company, say they are making a deal and are expected to boost sales by 15% in the next 2 years or something, in a weak-form market, it won't be very useful as the market is random, in semi-strong it will be better but i still wont be 100% sure to make profit but in a strong-form market i am certain that my trades will bring me profit as the market will react as predicted to this information and i can act before it happens. Are these assumptions right ? If not could you please explain to me what actually happens when inside trading in the different forms of market efficiency markets.
Any Help will be highly appreciated
Thanks
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inside trading
I am under the impression that if i have private material information of a company, say they are making a deal and are expected to boost sales by 15% in the next 2 years or something, in a weak-form market, it won't be very useful as the market is random, in semi-strong it will be better but i still wont be 100% sure to make profit but in a strong-form market i am certain that my trades will bring me profit as the market will react as predicted to this information and i can act before it happens. Are these assumptions right ? If not could you please explain to me what actually happens when inside trading in the different forms of market efficiency markets.
Any Help will be highly appreciated
Thanks
_____________
inside trading