Legal Aspects of Management
The Efficient Market Hypothesis (EMH) is the theory that financial markets are 'informationally efficient,' meaning that asset prices reflect all available information at any given time. This concept suggests that it is impossible to consistently achieve higher returns than the overall market through stock picking or market timing because prices already incorporate and reflect all known information. The hypothesis connects closely with the notions of securities regulation and insider trading, as it relies on the premise that all investors have equal access to relevant information.
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