Efficient market hypothesis suggests stock prices reflect all available information from "summary" of A Random Walk Down Wall Street by Burton Gordon Malkiel
The efficient market hypothesis suggests that stock prices reflect all available information. This means that the prices of stocks are always accurate and fair, incorporating all public and private information about a company. In an efficient market, it is impossible for an investor to consistently outperform the market by picking undervalued or overvalued stocks.
The theory behind the efficient market hypothesis is that in a competitive market, information is quickly and accurately reflected in stock prices. This implies that any information, whether it is positive or negative, will be factored into the price of a stock almost immediately. Therefore, stock prices are always up-to-date and reflect the true value of a company based on all available information.
Proponents of the efficient market hypothesis argue that it is extremely difficult to beat ...
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