The book discusses the Efficient Market Hypothesis (EMH) and its three forms. The EMH has a lot to do with information and stock prices.
• How does information get into prices?
• How do we know if prices reflect all available information?
• What are abnormal returns?
• What does the EMH have to say about abnormal returns?

DISCUSSION 2
We all remember the story about Martha Stewart, who was accused of insider trading. If not, take a moment to research this incident, then answer the following:
• Why is it illegal to trade stocks based on inside information?
• Other than Martha Stewart, provide an example of someone who was trading stocks on inside information.