• Embed Doc
  • Readcast
  • Collections
  • 1
    CommentGo Back
Download
 
Efficient Capital Market
An
efficient capital market
is amarket where the share prices reflectnew information accurately and inreal time. Capital market efficiency is judged by its success inincorporating and inductinginformation, generally about thebasic value of securities, into theprice of securities. This basic orfundamental value of securities is the
 
 The fluctuation in the value of stocksencourage traders to trade in acompetitive manner with theobjective of maximum profit. Thisresults in price movements towardsthe current value of the cash flows inthe future. The information is veryeasily available at cheap ratesbecause of the presence of organizedmarkets and various technological
 
In the weak-form efficient capitalmarket, information about the historyof previous returns and prices arereflected fully in the security prices;the returns from stocks in this typeof market are unpredictable.
of 00

Leave a Comment

You must be to leave a comment.
Submit
Characters: ...
08 / 07 / 2010<span class="translation_missing">en_US, this_document_made_it_onto_the</span>Rising List!
You must be to leave a comment.
Submit
Characters: ...