Sentence examples for efficient stock market from inspiring English sources

Overall, after controlling for several economic and financial conditions, the temporary mispricing in a developed and generally efficient stock market stimulates informative trading, ultimately leading to value- and performance-enhancing corporate decisions.

(An efficient stock market was one in which all information relevant to the discounted present value of stocks was freely available to all participants in the market and hence was immediately incorporated into their buying and selling plans; stock market prices were unpredictable because every fact that made them predictable had already been acted on).

This recognition turned on a changed understanding of the "efficient market hypothesis," which held that securities prices in an efficient stock market were inherently unpredictable that is, an investment in the stock market was, for all but insider traders, equivalent to gambling in a casino.

This assumption is disputed by adherents of an efficient stock market, who believe that few investors or investing models can consistently beat a low-cost mutual fund that tracks a stock market index, given the added transaction costs of active trading.

Anyone who believes in the existence of an efficient stock market needs professional help.

In a perfectly efficient stock market, splitting shares has no effect on the value of a company's equity; it's the same pizza cut into more slices.

If a country lacks efficient stock markets, for example, making stock options part of a compensation package becomes problematic.

Recent scholarship shows that countries with strong judicial systems administering rigorous financial laws enable companies to raise money more quickly and facilitate more efficient stock markets.

Efficient stock markets, where values are based on fundamentals rather than on speculation, are more likely to enjoy long-run and sustainable rises in value with lower volatility.

When active managers of equity funds claim to have a way of uncovering extra value in our highly (but not perfectly) efficient U.S. stock market, investors will look at their past records, consider the managers' strategies and invest or not.

They say that the market for portfolio managers is just as efficient as the stock market itself.