INDONESIAN STOCK MARKET

Efficient Market Hypothesis

Efficient Market Hypothesis

Efficient Market Hypothesis states that it is difficult to outsmart or outplay the market as efficiency of stock market causes the current prices of the shares to always include and provide a reflection of all the important and neccessary dimensions of the market that is relevant. According to EMH, stocks are bought and sold as per value that is considered fair, and it makes it hard for buyers to purchase the stocks that are not at their par value, which means either they are either below their par value or above their par ...