The efficient market hypothesis argues that current stock prices reflect all existing available information, making them fairly valued as they are presently. Given these assumptions, outperforming the ...

At first blush, stock trading this week is hardly a paragon of the market-efficiency theory, an oft-romanticized idea in Economics 101. After all, big equity gauges plunged on Monday, spurred by fears ...

Active investors make the market efficient by attempting to gain a competitive advantage in terms of information. Competition among all the highly skilled competitors makes it very difficult to gain ...

In 1970, in “Efficient Capital Markets: a Review of Theory and Empirical Work,” Eugene F. Fama defined a market to be “informationally efficient” if prices at each moment incorporate all available ...

I got a chance to speak last week on a panel at the American Philosophical Association and I’d hoped to end up speaking more than I actually did about economists’ bad habit of smuggling normative ...

The Efficient Markets Hypothesis (EMH) posits that financial markets swiftly and accurately incorporate all available information into asset prices, making it nearly impossible for investors to ...

In the fall, I posted on Professor Kevin R. Douglas's article, "How Creepy Concepts Undermine Effective Insider Trading Reform" (linked below), which is now forthcoming in the Journal of Corporation ...

Over-thinking the market can decrease wealth. Fama-French's new model supports long-duration common stock investing. The best businesses generate a great deal of free-cash-flow and don't require much ...

Knight Capital Group lost $440 million Wednesday, due to a computer glitch that caused its state-of- the- art, hi-tech, market making software to go rogue. For a full half hour, Knight computers went ...

BUILD a better mousetrap, the saying goes, and the world will beat a path to your door. Find a way to beat the stockmarket and they will construct a high-speed railway. As investors try to achieve ...