Efficient market theory Essay Example | Topics and Well Written Essays - 250 words

Efficient trade speculation - Essay ExampleThis information may make them perceive that a stock may rise or its price may decline and they may take decisions accordingly. Efficient market theory is of the idea that individuals within the market sport similar information and rejects the idea that different individuals may capture different information. This even means that the investor that first receives the information will benefit more than those who have accredited the information later. For example some investors of the stock market receives information that the sales of Procter & Gamble have increase by 100% as compared to the figures of last year. As a result of this the trader may hold back up purchasing the stock. If the trader had received this information later as compared to other traders, then the trader may not have purchased the stock at the right price since other traders may have already purchased the stock and the stock prices may have