answersLogoWhite

0


Want this question answered?

Be notified when an answer is posted

Add your answer:

Earn +20 pts
Q: What are the implications of efficient capital market?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

What is an efficient market and what are the implications of efficient markets for us?

An efficient market is the one that has stock prices which reflect al the information that is relevant and available. The implications of efficient markets is that they clearly advise on the investment options one has in terms of stocks and shares.


What is meant by efficiency continuum?

The efficiency continuum refers to capital markets. Within a capital market, if something is reasonable and efficient to the market, it is said to be on the efficiency continuum.


When was Efficient-market hypothesis created?

Efficient-market hypothesis was created in 1900.


What is an efficient market?

An efficient market is one in which the buyer and the seller gets what they want at a good price. An efficient market doesn't have to include an exchange of money.


What is capital market line?

It is discussed in efficient market hypothesis, meaning that you can not beat the market. Capital market line is drawn as a tangent on the curve representing both risky and non risky portfolio. At the point where tangent is drawn represents a model portfolio akin to market. All portfolio above this point has a higher risk reward ratio.


What is meant by the expression efficient market?

what is meant by the expression efficient market.briefly explain the different forms of efficient market


What are advantages of capital market?

The capital market offers several advantages. It provides access to long-term funding for businesses, allowing them to undertake investment projects. It also facilitates liquidity for investors, allowing them to buy and sell securities. Additionally, the capital market encourages efficient allocation of resources by pricing securities based on supply and demand.


What is an efficient market and what are the implications of efficient markets?

In an efficient market, information is impounded into security prices with such speed that there are no opportunities for investors to profit from publicly available information. Actually, what types of information are immediately reflected in security prices and how quickly that information is reflected determine how efficient the market actually is. The implications for us are, first, that stock prices reflect all publicly available information regarding the value of the company. This means we can implement our goal of maximization of shareholder wealth by focusing on the effect each decision should have on the stock price all else held constant. It also means that earnings manipulations through accounting changes should not result in price changes. In effect our preoccupation with cash flows is validated.


What is the difference between the efficient market hypothesis the fractal market hypothesis and the coherent market hypothesis?

0 what are characteristics of efficient market hypothesis?


What do you mean by capital market?

capital market is a market where long term loans are availble that place called capital market


Is a preferred stock a money market or a capital market?

capital market


Who are the capital market and money market operators?

who are the operators of money market and capital market