From 1797c70c8ac6d15c0fdc8f311be7ecd4d3f6945d Mon Sep 17 00:00:00 2001 From: Christian McKay Stevenson Date: Tue, 19 Jan 2021 18:12:18 -0500 Subject: [PATCH] update: Efficient Market Hypothesis MIME-Version: 1.0 Content-Type: text/plain; charset=UTF-8 Content-Transfer-Encoding: 8bit 👷 | Efficient Market Hypothesis | The efficient market hypothesis (EMH), alternatively known as the efficient market theory, is a hypothesis that states that share prices reflect all available, pertinent information, thereby making it impossible to beat the system. According to the EMH, stocks always trade at their fair value on exchanges, making it impossible for investors to purchase undervalued stocks or sell stocks for inflated prices. Therefore, it should be impossible to outperform the overall market through expert stock selection or market timing; the only way an investor can obtain higher returns is by purchasing riskier investments.| --- content/glossary/_index.md | 3 ++- 1 file changed, 2 insertions(+), 1 deletion(-) diff --git a/content/glossary/_index.md b/content/glossary/_index.md index 0ff9ddd..7e1b5ef 100644 --- a/content/glossary/_index.md +++ b/content/glossary/_index.md @@ -165,7 +165,8 @@ Since prices continuously rise and fall during trading, the classification of "b | Legend | Term | Description | | ------ | ------ |------ | -| ⚠️ | Efficient Market Hypothesis | TBD | +| 👷 | Efficient Market Hypothesis | The efficient market hypothesis (EMH), alternatively known as the efficient market theory, is a hypothesis that states that share prices reflect all available, pertinent information, thereby making it impossible to beat the system. +According to the EMH, stocks always trade at their fair value on exchanges, making it impossible for investors to purchase undervalued stocks or sell stocks for inflated prices. Therefore, it should be impossible to outperform the overall market through expert stock selection or market timing; the only way an investor can obtain higher returns is by purchasing riskier investments.| | ⚠️ | Elliptic Curve Cryptography | TBD | | ⚠️ | Ethereum | TBD | | ⚠️ | Ethereum Enterprise Alliance (EEA) | TBD |