Advances in information technology have made the timely receipt of information more and more valuable. Today, real-time information can be extracted externally from company databases through secured web sites. Analysts representing institutional investors are able to receive this type of information in real time. Similarly, press releases and quarterly information can be posted to web sites for instant access by the public.

a. Analyze the effect that this technology may have on the value of stock market information to market participants, paying special attention to the value of information in the market.

b. Explain the problems that less sophisticated investors face when they trade in a stock market where such technology is widely used.

c. Explain why stock market regulators might limit restricted access to real-time company information under some circumstances.