Jaffe found that stock prices ________ after insiders intensively bought shares and ________ after insiders intensively sold shares.

A) decreased; decreased
B) decreased; increased
C) increased; decreased
D) increased; increased

Stock Prices

The cost of purchasing a share of a company, which fluctuates based on market conditions and company performance.

Insiders

Individuals or entities that have access to non-public, material information about a company, often corporate officers, directors, or significant shareholders.