True, False, or Uncertain? Discuss! \"The US stock market is efficient.\" In pre

Question

True, False, or Uncertain? Discuss!

"The US stock market is efficient."

In preparing to contribute to this discussion, you should first think about what is it that the market is supposed to do efficiently. Having identified what it means to say that the market is efficient, consider the observable (or empirical) implications of stock market efficiency. Is real world data or observation consistent with these implications?

Need a very detailed answer with good info and please DO COPY an paste it from the internet! TY

Explanation / Answer

"The US stock market is efficient."

Answer:-True.

Explanation:- The basic premise of Efficient Market Theory is that market participants receive and act on all the relevant information as soon as it becomes available in the stock market. In other words, Prices of securities reflect not only all the information found in the record of past prices and volumes but also all other publicly available information. U.S. stock market is efficient one as the prices of company's stock there reflects all kind of information like information regarding the company, the technology used in company, other reliable information regrading the company's stock which is available publicly in the market. Further, trading of securities in U.S. is also not very expensive. Thus, U.S. Stock Market is efficient form of market.

Conclusion:- The statement given in the question is true.

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