Financial Dictionary

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Atlantic Financial


Investment Word

Efficient Market Theory

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Efficient Market Theory is called 'hogwash' and 'malarkey' by some top Wall Street professionals while considered advanced theory by others, this theory states that the price of a stock is a reflection of its actual value. In other words, there are no values in any stocks and no method of picking stocks is likely to yield returns higher than the market over time.

Efficient Market Theory - definition

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