Q1. The access to the insider information gives a huge advantage to the individual using it. If all people could use insider information of company, this would make the market inefficient. This situation makes it unfair. That is why this operation is considered as illegal act and have very significant consequences. The insider information is very difficult to find. When someone possesses the information and uses it in proper time, this can help to reduce transaction losses and get higher returns in future. Insider traders` actions are highly regulated and heavily are punished for meeting any illegal actions. However, insider information is not easy to get. (W 105)

Q2. This shows that securities market reacts on news and release of special information. This reaction shows that market is efficient. However, security market researches need to consider this "post announcement drift" effect and read it as a temporary changes of company's state. The assumptions about the market efficiency should not be rejected. This is one of the cases when analysts should pay attention to the reasons which caused those abnormalities. (W 70) Q3. High organisation`s securities market value depends on how successfully management team operated with those securities. In the question it is said that if organisation`s operations heavily on the specialised expertise of its management team, we would expect high correspondence between the net asset in balance sheet and the total market value of