The efficient market hypothesis proposes that security prices reflect all available information. It comes in three forms: weak (only past prices), semi-strong (all public information) and strong (all information). Evidence supports weak and semi-strong forms, showing prices adjust to new public information. The hypothesis implies that fundamental analysis and technical analysis may not identify mispriced securities. It also provides support for low-cost index funds. While influential, the hypothesis has limitations and some strategies may achieve above-average returns.
This slide set is a work in progress and is embedded in my Principles of Finance course, which is also a work in progress, that I teach to computer scientists and engineers
http://awesomefinance.weebly.com/
This presentation is designed to inform potential clients or anyone who is interested in utilizing social media in their business. However, as a reminder, I always let them know that social media is not the answer, it is a tool. Their service or product is the true selling point.
This slide set is a work in progress and is embedded in my Principles of Finance course, which is also a work in progress, that I teach to computer scientists and engineers
http://awesomefinance.weebly.com/
This presentation is designed to inform potential clients or anyone who is interested in utilizing social media in their business. However, as a reminder, I always let them know that social media is not the answer, it is a tool. Their service or product is the true selling point.
: Security and Portfolio Analysis :Efficient market theoryRahulKaushik108
Key Concepts of Efficient market theory: Very Lucid presentation , very Useful for MBA student to understand the Concepts of Efficient Market theory( Random walk hypotheses ) .The key idea of the hypotheses is" no one can efficiently out predict the market" or in other terms, technical analysis or fundamental analysis can not beat "the naive buy and hold strategy".
Arbitrage pricing theory & Efficient market hypothesisHari Ram
Arbitrage pricing theory (APT) is a multi-factor asset pricing model based on the idea that an asset's returns can be predicted using the linear relationship between the asset's expected return and a number of macroeconomic variables that capture systematic risk.
According to the EMH, stocks always trade at their fair value on stock exchanges, making it impossible for investors to either purchase undervalued stocks or sell stocks for inflated prices. As such, it should be impossible to outperform the overall market through expert stock selection or market timing, and that the only way an investor can possibly obtain higher returns is by purchasing riskier investments.
Putting the SPARK into Virtual Training.pptxCynthia Clay
This 60-minute webinar, sponsored by Adobe, was delivered for the Training Mag Network. It explored the five elements of SPARK: Storytelling, Purpose, Action, Relationships, and Kudos. Knowing how to tell a well-structured story is key to building long-term memory. Stating a clear purpose that doesn't take away from the discovery learning process is critical. Ensuring that people move from theory to practical application is imperative. Creating strong social learning is the key to commitment and engagement. Validating and affirming participants' comments is the way to create a positive learning environment.
Remote sensing and monitoring are changing the mining industry for the better. These are providing innovative solutions to long-standing challenges. Those related to exploration, extraction, and overall environmental management by mining technology companies Odisha. These technologies make use of satellite imaging, aerial photography and sensors to collect data that might be inaccessible or from hazardous locations. With the use of this technology, mining operations are becoming increasingly efficient. Let us gain more insight into the key aspects associated with remote sensing and monitoring when it comes to mining.
Memorandum Of Association Constitution of Company.pptseri bangash
www.seribangash.com
A Memorandum of Association (MOA) is a legal document that outlines the fundamental principles and objectives upon which a company operates. It serves as the company's charter or constitution and defines the scope of its activities. Here's a detailed note on the MOA:
Contents of Memorandum of Association:
Name Clause: This clause states the name of the company, which should end with words like "Limited" or "Ltd." for a public limited company and "Private Limited" or "Pvt. Ltd." for a private limited company.
https://seribangash.com/article-of-association-is-legal-doc-of-company/
Registered Office Clause: It specifies the location where the company's registered office is situated. This office is where all official communications and notices are sent.
Objective Clause: This clause delineates the main objectives for which the company is formed. It's important to define these objectives clearly, as the company cannot undertake activities beyond those mentioned in this clause.
www.seribangash.com
Liability Clause: It outlines the extent of liability of the company's members. In the case of companies limited by shares, the liability of members is limited to the amount unpaid on their shares. For companies limited by guarantee, members' liability is limited to the amount they undertake to contribute if the company is wound up.
https://seribangash.com/promotors-is-person-conceived-formation-company/
Capital Clause: This clause specifies the authorized capital of the company, i.e., the maximum amount of share capital the company is authorized to issue. It also mentions the division of this capital into shares and their respective nominal value.
Association Clause: It simply states that the subscribers wish to form a company and agree to become members of it, in accordance with the terms of the MOA.
Importance of Memorandum of Association:
Legal Requirement: The MOA is a legal requirement for the formation of a company. It must be filed with the Registrar of Companies during the incorporation process.
Constitutional Document: It serves as the company's constitutional document, defining its scope, powers, and limitations.
Protection of Members: It protects the interests of the company's members by clearly defining the objectives and limiting their liability.
External Communication: It provides clarity to external parties, such as investors, creditors, and regulatory authorities, regarding the company's objectives and powers.
https://seribangash.com/difference-public-and-private-company-law/
Binding Authority: The company and its members are bound by the provisions of the MOA. Any action taken beyond its scope may be considered ultra vires (beyond the powers) of the company and therefore void.
Amendment of MOA:
While the MOA lays down the company's fundamental principles, it is not entirely immutable. It can be amended, but only under specific circumstances and in compliance with legal procedures. Amendments typically require shareholder
Discover the innovative and creative projects that highlight my journey throu...dylandmeas
Discover the innovative and creative projects that highlight my journey through Full Sail University. Below, you’ll find a collection of my work showcasing my skills and expertise in digital marketing, event planning, and media production.
As a business owner in Delaware, staying on top of your tax obligations is paramount, especially with the annual deadline for Delaware Franchise Tax looming on March 1. One such obligation is the annual Delaware Franchise Tax, which serves as a crucial requirement for maintaining your company’s legal standing within the state. While the prospect of handling tax matters may seem daunting, rest assured that the process can be straightforward with the right guidance. In this comprehensive guide, we’ll walk you through the steps of filing your Delaware Franchise Tax and provide insights to help you navigate the process effectively.
Business Valuation Principles for EntrepreneursBen Wann
This insightful presentation is designed to equip entrepreneurs with the essential knowledge and tools needed to accurately value their businesses. Understanding business valuation is crucial for making informed decisions, whether you're seeking investment, planning to sell, or simply want to gauge your company's worth.
Accpac to QuickBooks Conversion Navigating the Transition with Online Account...PaulBryant58
This article provides a comprehensive guide on how to
effectively manage the convert Accpac to QuickBooks , with a particular focus on utilizing online accounting services to streamline the process.
Taurus Zodiac Sign_ Personality Traits and Sign Dates.pptxmy Pandit
Explore the world of the Taurus zodiac sign. Learn about their stability, determination, and appreciation for beauty. Discover how Taureans' grounded nature and hardworking mindset define their unique personality.
Unveiling the Secrets How Does Generative AI Work.pdfSam H
At its core, generative artificial intelligence relies on the concept of generative models, which serve as engines that churn out entirely new data resembling their training data. It is like a sculptor who has studied so many forms found in nature and then uses this knowledge to create sculptures from his imagination that have never been seen before anywhere else. If taken to cyberspace, gans work almost the same way.
Cracking the Workplace Discipline Code Main.pptxWorkforce Group
Cultivating and maintaining discipline within teams is a critical differentiator for successful organisations.
Forward-thinking leaders and business managers understand the impact that discipline has on organisational success. A disciplined workforce operates with clarity, focus, and a shared understanding of expectations, ultimately driving better results, optimising productivity, and facilitating seamless collaboration.
Although discipline is not a one-size-fits-all approach, it can help create a work environment that encourages personal growth and accountability rather than solely relying on punitive measures.
In this deck, you will learn the significance of workplace discipline for organisational success. You’ll also learn
• Four (4) workplace discipline methods you should consider
• The best and most practical approach to implementing workplace discipline.
• Three (3) key tips to maintain a disciplined workplace.
RMD24 | Debunking the non-endemic revenue myth Marvin Vacquier Droop | First ...BBPMedia1
Marvin neemt je in deze presentatie mee in de voordelen van non-endemic advertising op retail media netwerken. Hij brengt ook de uitdagingen in beeld die de markt op dit moment heeft op het gebied van retail media voor niet-leveranciers.
Retail media wordt gezien als het nieuwe advertising-medium en ook mediabureaus richten massaal retail media-afdelingen op. Merken die niet in de betreffende winkel liggen staan ook nog niet in de rij om op de retail media netwerken te adverteren. Marvin belicht de uitdagingen die er zijn om echt aansluiting te vinden op die markt van non-endemic advertising.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
"𝑩𝑬𝑮𝑼𝑵 𝑾𝑰𝑻𝑯 𝑻𝑱 𝑰𝑺 𝑯𝑨𝑳𝑭 𝑫𝑶𝑵𝑬"
𝐓𝐉 𝐂𝐨𝐦𝐬 (𝐓𝐉 𝐂𝐨𝐦𝐦𝐮𝐧𝐢𝐜𝐚𝐭𝐢𝐨𝐧𝐬) is a professional event agency that includes experts in the event-organizing market in Vietnam, Korea, and ASEAN countries. We provide unlimited types of events from Music concerts, Fan meetings, and Culture festivals to Corporate events, Internal company events, Golf tournaments, MICE events, and Exhibitions.
𝐓𝐉 𝐂𝐨𝐦𝐬 provides unlimited package services including such as Event organizing, Event planning, Event production, Manpower, PR marketing, Design 2D/3D, VIP protocols, Interpreter agency, etc.
Sports events - Golf competitions/billiards competitions/company sports events: dynamic and challenging
⭐ 𝐅𝐞𝐚𝐭𝐮𝐫𝐞𝐝 𝐩𝐫𝐨𝐣𝐞𝐜𝐭𝐬:
➢ 2024 BAEKHYUN [Lonsdaleite] IN HO CHI MINH
➢ SUPER JUNIOR-L.S.S. THE SHOW : Th3ee Guys in HO CHI MINH
➢FreenBecky 1st Fan Meeting in Vietnam
➢CHILDREN ART EXHIBITION 2024: BEYOND BARRIERS
➢ WOW K-Music Festival 2023
➢ Winner [CROSS] Tour in HCM
➢ Super Show 9 in HCM with Super Junior
➢ HCMC - Gyeongsangbuk-do Culture and Tourism Festival
➢ Korean Vietnam Partnership - Fair with LG
➢ Korean President visits Samsung Electronics R&D Center
➢ Vietnam Food Expo with Lotte Wellfood
"𝐄𝐯𝐞𝐫𝐲 𝐞𝐯𝐞𝐧𝐭 𝐢𝐬 𝐚 𝐬𝐭𝐨𝐫𝐲, 𝐚 𝐬𝐩𝐞𝐜𝐢𝐚𝐥 𝐣𝐨𝐮𝐫𝐧𝐞𝐲. 𝐖𝐞 𝐚𝐥𝐰𝐚𝐲𝐬 𝐛𝐞𝐥𝐢𝐞𝐯𝐞 𝐭𝐡𝐚𝐭 𝐬𝐡𝐨𝐫𝐭𝐥𝐲 𝐲𝐨𝐮 𝐰𝐢𝐥𝐥 𝐛𝐞 𝐚 𝐩𝐚𝐫𝐭 𝐨𝐟 𝐨𝐮𝐫 𝐬𝐭𝐨𝐫𝐢𝐞𝐬."
Affordable Stationery Printing Services in Jaipur | Navpack n PrintNavpack & Print
Looking for professional printing services in Jaipur? Navpack n Print offers high-quality and affordable stationery printing for all your business needs. Stand out with custom stationery designs and fast turnaround times. Contact us today for a quote!
Enterprise Excellence is Inclusive Excellence.pdfKaiNexus
Enterprise excellence and inclusive excellence are closely linked, and real-world challenges have shown that both are essential to the success of any organization. To achieve enterprise excellence, organizations must focus on improving their operations and processes while creating an inclusive environment that engages everyone. In this interactive session, the facilitator will highlight commonly established business practices and how they limit our ability to engage everyone every day. More importantly, though, participants will likely gain increased awareness of what we can do differently to maximize enterprise excellence through deliberate inclusion.
What is Enterprise Excellence?
Enterprise Excellence is a holistic approach that's aimed at achieving world-class performance across all aspects of the organization.
What might I learn?
A way to engage all in creating Inclusive Excellence. Lessons from the US military and their parallels to the story of Harry Potter. How belt systems and CI teams can destroy inclusive practices. How leadership language invites people to the party. There are three things leaders can do to engage everyone every day: maximizing psychological safety to create environments where folks learn, contribute, and challenge the status quo.
Who might benefit? Anyone and everyone leading folks from the shop floor to top floor.
Dr. William Harvey is a seasoned Operations Leader with extensive experience in chemical processing, manufacturing, and operations management. At Michelman, he currently oversees multiple sites, leading teams in strategic planning and coaching/practicing continuous improvement. William is set to start his eighth year of teaching at the University of Cincinnati where he teaches marketing, finance, and management. William holds various certifications in change management, quality, leadership, operational excellence, team building, and DiSC, among others.
2. How can we forcast price of share?
• Fundamental Analysis
• Technical Analysis
• Market price of the share is not only dependent on
demand and supply but several other factors – can be
termed as INFORMATION.
• The perceptual inferences of all information available in
the market, if quantified accurately should help in
predicting the expected price of the securities.
• This has been advocated thro’ informal market efficiency
theory.
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3. History
• Developed by Professor Eugene Famaat the University
of Chicago Booth School of Business.
• The efficient-market hypothesis was first expressed by
Louis Bachelier, a French mathematician, in his 1900
dissertation, "The Theory of Speculation".
• The efficient-market hypothesis emerged as a prominent
theory in the mid-1960s. Paul Samuelson had begun to
circulate Bachelier's work among economists.
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4. Why Efficient Market Hypothesis?
• To test the form of market – extent of efficiency.
• To make sure that one can accurately forecast the
market, discover the market trend and help investors to
make critical decisions.
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5. The most important
consequences of this
hypothesis is that it is not
possible to outperform the
market (adjusted for risk) over
the long term
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6. What is Efficient Market?
• A market where there are large numbers
of rational profit maximizers actively
competing, with each trying to predict
future market values of individual
securities, and where important current
information is almost freely available to all
participants
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7. Market Reaction to an
unanticipated favorable event
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8. Market Reaction to anticipated
favorable event
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10. Efficient Market Hypothesis
• Securities prices always fully reflect all available,
relevant information about the security.
• Note the key words of the definition: “always,” “fully,”
and “information.”
• Two important questions
– What is all available information?
– What does it mean to “Reflect all available information?”
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11. All available information
• Past Price : Weak Form
• All public information : Semi Strong Form
– Past price, news etc..
• All information including inside information
: Strong Form
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12. Why should price reflect available
information?
• If not, there would be arbitrage
opportunities
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13. Early thinking about securities market
prices
(early 20th century):
• Observers noticed that the charts that tracked
the pattern of stock market prices looked similar
to a chart of a random event, such as tossing a
coin and marking an increase if you get a
“heads,” or a decrease if you get a “tails.”
• They wondered why the stock market behaved
like a random walk.
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14. Important!
• The actual stock price was not seen to be random, only
the CHANGE in the price appeared to be random in
occurrence.
• In particular, using valuation theory, it should be true that
a common stock sells for a price that is the present value
of all the future cash flows (dividends) expected by
investors.
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15. What would cause a stock price to
change?
• A reasonable answer is that the price would change if
investors obtain new information about the stock that
causes them to revise their forecast about the stock’s
future return.
• New information that causes investors to be more
optimistic would cause them to revalue the stock price
higher. Negative information would result in lower price
revaluations.
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16. Since new information arrives in
the market in an unpredictable
(random) fashion, prices will
change randomly as well.
• Conclusion: New information is the cause of securities
price changes. Since one cannot predict whether the
next piece of new information will be favorable or
unfavorable for a stock, the future changes in stock
prices are similarly unpredictable.
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17. Much empirical research has
been done to examine how much
(or how fully) information is
incorporated in market prices.
• Questions about the extent of the information
incorporated has led to several terms to describe the
degree of efficiency exhibited in a particular market.
• The three terms are “weak form efficient,” “semi-strong
form efficient,” and “strong form efficient.”
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18. The weak form efficient markets
hypothesis - a definition, and
some evidence:
• The weak form hypothesis maintains that past stock
price changes cannot be used to earn above average
profits. (Because this information is available to all, and
thus, already incorporated in market price.)
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19. Weak form evidence:
• Studies show that systems that try to predict the future
course of stock prices based upon some rule derived
from the history (past days, weeks, or months) of past
stock price changes do not make profit greater than a
simple buy and hold strategy.
• Statistical analysis of successive stock price changes
reveals that the correlation between price changes is
approximately zero.
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21. If a market is weak form efficient,
then technical analysis should
not be effective in picking stocks
for above average profits.
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22. Despite the evidence for market
efficiency, there are many
professional investors who claim
that technical analysis can be
effective. Such claims are largely
unproven, but it shows that not
everyone accepts the efficient
market hypothesis.
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23. The semi-strong form efficient
markets hypothesis - a definition
and some evidence:
• The semi-strong form efficient markets hypothesis
maintains that all publicly available information is
incorporated in stock prices.
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24. Semi-strong form evidence:
• Studies show that public announcements of earnings,
dividends, stock splits, etc. cause stock prices to
immediately change to reflect the new information.
• Studies show that mutual funds (whose professional
managers would be expected to have access to the very
best information available) do not consistently
outperform the average market indexes.
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26. If a market is semi-strong
efficient, then picking stocks
based on publicly available
information, should not yield
profits greater than what could
be obtained using a simple buy
and hold strategy.
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27. Evidence of efficient markets has
given great impetus to the
formation of “Index Funds,” for
investors wanting to minimize
research costs and trading costs
while investing in a mutual fund
that closely tracks a given market
index.
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28. The strong form of the efficient
markets hypothesis - a definition
and some evidence:
• The strong form of the hypothesis maintains that all
information obtainable from any source whatever, is
incorporated in market prices.
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29. Strong form evidence:
• Studies show that “inside information” available to
corporate insiders or market specialists could be used to
earn above average trading profits
• Yet, remember that using inside information is illegal!.
Thus, strong form inefficient markets may not be legally
exploited to earn greater than average profits, either.
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32. In conclusion:
• There is evidence that markets are weak form and semi-
strong form efficient, but probably not strong form
efficient.
• Yet it must be noted that the tests of efficiency have
largely focused on well developed markets in the United
States. Foreign markets have been studied less
extensively, and may exhibit less efficiency. This is
especially true of markets in less developed countries
(sometimes called “emerging” markets).
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33. Finally, it should be noted that
there is some evidence that
contradicts the hypothesis.
• Some market studies give evidence that a
strategy as simple as buying low P/E ratio
stocks can result in above average profit.
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34. The efficient market hypothesis
has not been “proven,” however,
it is a highly regarded tenant in
modern finance.
• If markets are efficient, investors can expect that prices
are “fair,” and that the rate of return earned from a
diversified portfolio of securities over time will be
approximately average for that class of securities.
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35. LearningMadeSimpleTM
Learning Made Simple is initiative taken by few people earlier
related to the Corporate World whose aim is to provide quality
education and training to those who wish to excel in their career
path. Learning Made Simple is an association who works on a no
profit no loss basis and provide training and development in the
era of Financial Planning, Financial Management, AMFI, NCFM,
Management Concepts, Soft Skills, Leadership, Personality
Development, Goal Setting, Marketing Management, Behavioral
Science, NLP and various other segments. You can get in touch
with us by sending email on kaushal@thefinancialplanners.in