FIN 302 Lecture Notes - Lecture 23: Alan Greenspan, Golden Parachute, Efficient-Market Hypothesis

• School: U of M
• Department: Finance
• Course: FIN 302
• Professor: Denis Sosyura

Document Summary

Session 23: efficient market, anomalies, and investing, part 1. Market anomalies and implications for personal investing. In an efficient market, prices reflect all public information and adjust immediately if new information is released - all assets are fairly priced: alan greenspan: prices in the marketplace are by definition the right prices. Almost instantaneous access of investors to the release of new information. Thousands of traders constantly monitoring the news and waiting to trade on new information. Greed - people and investors are looking to turn a profit. Greed is good - greed pushes investors to find new information. Markets are becoming more efficient as the transfer of information is becoming better. Cnbc: anchor - what they say, movements in the stock price - the processing of information, as soon as they speak, the markets are already reacting within seconds, market efficiency in real time - youtube. Firms are run by professional managers rather than by firm"s owners (shareholders)