Efficient market theory

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Efficient Market Theory

A controversial model on how markets work. It states that the market efficiently deals with all information on a given security and reflects it in the price immediately. The model holds that technical analysis, fundamental analysis, and any speculative investing based on them are useless. The model has three forms: weak efficiency, which holds that technical analysis is ineffective, semi-strong efficiency, which holds that fundamental analysis is ineffective, and strong efficiency, which states that even insider information is immediately reflected in the security prices. Investors and academics disagree on how well the model works.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

Efficient market theory.

Proponents of the efficient market theory believe that a stock's current price accurately reflects what investors know about the stock.

They also maintain that you can't predict a stock's future price based on its past performance. Their conclusion, which is contested by other experts, is that it's not possible for an individual or institutional investor to outperform the market as a whole.

Index funds, which are designed to match, rather than beat, the performance of a particular market segment, are in part an outgrowth of efficient market theory.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
References in periodicals archive ?
The full-time programme offers UAE Nationals the opportunity to gain the theoretical knowledge and practical experience necessary to take up a full-time position as an EMT with National Ambulance.
Around 65 commercial banks, along with a few money transfer institutions, are licensed to carry out domestic and international EMTs by Banque du Liban (BDL), Lebanon's central bank.
One hundred fifty cases of EMT combined with infertility patients were admitted to the Affiliated Hospital of Hebei University from January 2013 to January 2016.
Besides, according to mathematical models of stemness-decision circuits, it has been suggested that a hybrid E/M state is more likely to gain stemness than complete EMT is [14, 30].
During the EMT process, a Snail-dependent repression of E-cadherin and increased expression of vimentin also occur [29].
TGF-[sz] is the strongest profibrotic factor in EMT of peritoneal mesothelial cells (PMCs) and a key mediator in dialysis-related peritoneal fibrosis.[sup][5],[22] Platelet-derived growth factor (PDGF) also induced partial EMT in vivo and stimulated human PMC proliferation in vitro .[sup][23],[24]As TGF-[sz]R and PDGF receptors (PDGFR) are both glycosylated, and CF is their common posttranslational modification,[sup][25] we believed that blocking CF may simultaneously inhibit TGF-[sz] and PDGF signaling pathways, resulting in a synergistic protective effect in ameliorating EMT.
"The mission of this new [signage] is to remember the need to maintain civic behavior and to respect the space of everyone on board," a (http://www.emtmadrid.es/Noticias/EMT-amplia-su-senalizacion-a-bordo-del-autobus-par.aspx) statement released by the EMT said Tuesday.
However, rare studies have investigated the mechanisms of metastasis and EMT in RCC.
The toxic effects of AA on proximal tubular epithelial cells can induce the cytokine secretion promoting extracellular matrix (ECM) synthesis and epithelial-to-myofibroblast transition (EMT) [4, 5].
Epithelialto-mesenchymal transition (EMT) often occurs in the progression of various epithelial cell carcinomas and is closely associated with invasion and metastasis of tumors including CRC [3].