What you think will happen to share prices and when

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Reference no: EM133328058

Question: The shares of ownership of the corporation KLM Co. are publicly traded. The directors of KLM Co. have discovered information that will increase their company's ability to pay higher dividends in the future. This information has not yet been released to the general public. The directors now begin illegally to trade shares in their company on the basis of this information. The information will be publicly released later at time A The market the shares are traded in exhibits semi-strong market efficiency. a. In one sentence, define semi-strong market efficiency. b. What is the (two-word) term for the actions that the directors of KLM Co. are engaged in? c. Using the graph below, draw what you think will happen to share prices and when. Make sure you label your graph very carefully, and explain in words

Reference no: EM133328058

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