Efficient Market Theory: A Contradiction Of Terms
Beginning of paper
Table of Contents
Table of Contents i
Abstract 2
Discussion 1-1
References A-1
Abstract
According to the Efficient Market Theory, it should be extremely difficult
for an investor to develop a "system" that consistently selects stocks t ....
Middle of paper
.... the value of the
normal investment stock at any given time accurately reflects the real
value of that stock. The price for a stock reflects its actual underlying
value, financial managers cannot time stock and bond sales to take
advantage of "insider" information, sales of stocks and bonds will not
depress prices, and companies cannot "cook the books" to artificially
manipulate stock and bond prices. However, information technology and
market dynamics are based upon the workings of ordinary p ....
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Word count: 754
Page count: 3 (approximately 250 words per page)
