2. Finnerty, Joseph E. "Insiders and market efficiency." The journal of finance 31.4 (1976): 1141-1148.
From the latter:
> THE STRONG-FORM of the efficient market hypothesis assumes all available public and private information is fully [reflected] in a security's market price. The strong-form, in terms of market participants, also assumes that no individual can have higher expected trading profits than others because of monopolistic access to information. One possible test of the strong-form is to determine whether insiders earn better than average profits from their market transactions. To ascertain if the market is truly efficient will involve determining how well insiders do relative to the market in general. To date, some work has already been done in evaluating rates of return earned by insiders trading for their own accounts. ...
I would wager (in a prediction market) that many people who cite the efficient market hypothesis may be unaware of the second sentence in the quote above.
Some sources to consider include:
1. From Brittanica' ProCon.org: https://insidertrading.procon.org/view.answers.php?questionI...
2. Finnerty, Joseph E. "Insiders and market efficiency." The journal of finance 31.4 (1976): 1141-1148.
From the latter:
> THE STRONG-FORM of the efficient market hypothesis assumes all available public and private information is fully [reflected] in a security's market price. The strong-form, in terms of market participants, also assumes that no individual can have higher expected trading profits than others because of monopolistic access to information. One possible test of the strong-form is to determine whether insiders earn better than average profits from their market transactions. To ascertain if the market is truly efficient will involve determining how well insiders do relative to the market in general. To date, some work has already been done in evaluating rates of return earned by insiders trading for their own accounts. ...
I would wager (in a prediction market) that many people who cite the efficient market hypothesis may be unaware of the second sentence in the quote above.