Do empirical studies support or reject the notion that corporate insiders earn abnormal profits on their trades? What about outside investors who mimic their trades? What forms of market efficiency, if any, are supported by these studies? Respond to at least two of your classmates’ postings.
Quest. # 2
What is the main premise underlying the pecking order theory? What is the “pecking order” of sources of financing? Why is dividend policy so important to this theory? How does the concept of financials slack relate to this theory? Respond to at least two of your classmates’ postings