Your browser (Internet Explorer 8 or lower) is out of date. It has known security flaws and may not display all features of this and other websites. Learn how to update your browser.

X

Menu

Stock

EMH - Efficient market hypothesis
investvadim
The efficient market hypothesis (EMH) is an investment theory that states it is impossible to "beat the market" because stock market efficiency causes existing share prices to always incorporate and reflect all relevant information. According to the EMH, stocks always trade at their fair value on stock exchanges, making it impossible for investors to either purchase undervaluedstocks or sell stocks for inflated prices. As such, it should be impossible to outperform the overall market through expert stock selection or market timing, and that the only way an investor can possibly obtain higher returns is by purchasing riskier investments.

Finance Stock Market Stockmarket Hypothesis

  • 3 years 10 months ago

Pages