Which of the following statements about the strong form of market efficiency is not correct?

A) Security prices fully reflect all information, including that which is not publicly available.
B) Investors are able to participate in 'insider trading'.
C) Investors are unable to earn abnormal returns through private information.
D) Capital markets are not considered to be efficient in the strong form.

Market Efficiency

A financial market theory suggesting that asset prices fully reflect all available information, making it impossible to consistently achieve higher returns.

Insider Trading

The illegal practice of trading on the stock exchange to one's own advantage through having access to confidential information.

Security Prices

The market value for tradable financial instruments such as stocks, bonds, and derivatives at any given time.