The Efficient Market Hypothesis in action

Posted on September 13, 2008


One of the more interesting and hotly debated concepts in finance is the efficient market hypothesis, which “assumes that all important information regarding a stock is reflected in the price of that stock.” (Definition courtesy of Brigham’s 12 edition textbook.) Personally, I’m not exactly sure where I fall on this argument, thought it’s clear that barriers drop daily as technology continues to transfer information at a faster and faster rate.

That said, I have a little chuckle about this article regarding United Airlines and its stock price after an old news release seeped into the regular news cycle.


Posted in: finance