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.

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.

References in periodicals archive ?
Next, we investigated the effect of CF on EMT by knocking down Fut8 with Fut8 siRNA in vitro .
For EMT study, we used a model of high glucose-induced TGF-[beta] mediated EMT as described previously (Lv et al.
The oncogenic activity of SIRT1 in HCC has been related to the induction of genomic instability via dysregulated telomeric maintenance [62] as well as EMT initiation via Snail and Twist upregulation, with consequent E-cadherin suppression.
The ability to accurately administer EMT with a greater workload range is important for both patients and healthy individuals, since a greater and more precise workload is likely to facilitate EMT efforts.
Mani and colleagues had earlier found increased expression of PDGFR-B in cells forced to undergo EMT.
We calculated the rate of different EMT partners per 10 shifts worked by dividing the total number of partners by total shifts worked and multiplying that figure by 10.
At the same time, he was unable to say when EMT would open its 4G to clients.
Department of Labor, the median annual earnings in the industries employing the largest numbers of EMTs and paramedics in May 2004 were between $23,130 and $27,720, although the highest 10 percent earned more than $43,240.
Por otra parte, si se incluye a los trabajadores por cuenta propia, se comprueba que uno de cada cinco trabajadores de las EMT gana menos de un salario minimo y casi el 55% gana menos de dos salarios minimos; sin embargo, el 21% gana cuatro salarios minimos y mas.
The upgrade to HSDPA enables EMT to introduce its customers to a new generation of mobile services, including mobile broadband, mobile video and mobile music.
EMT Retain is a new content management and communications system from Hobsons.