The stock market is informationally efficient

The stock market is informationally efficient

Posted: olgerd Date: 06.06.2017

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A theory, which moves beyond the definition of the efficient market hypothesis , that states that new information about any given firm is known with certainty, and is immediately priced into that company's stock. Before any big news release, a company's stock may change in value, due to investors and traders speculating on the stock's intrinsic value after the news release.

the stock market is informationally efficient

In an informationally efficient market, there will be little to no price change after the news release comes out. Under this hypothesis any changes in stock price, after a news release, would be due to the interpretation of the news by individual analysts.

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Informationally Efficient Market Share. Overreaction Price Efficiency Hypothesis Testing Null Hypothesis Weak Form Efficiency Semi-Strong Form Efficiency Discounting Mechanism Adaptive Market Hypothesis P-Value.

the stock market is informationally efficient

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