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Document Type

Article

Abstract

Impending changes in social security as well as in corporate and government policies are making individuals more responsible for their retirement savings. As a result, knowledge of investing concepts and financial markets is more important than ever before. The efficient markets hypothesis, the dominant financial markets theory, is described and analyzed. In doing so assumptions are questioned and the three forms of market efficiency are evaluated in quantitative and qualitative fashion to determine whether the efficient markets hypothesis is an accurate view of financial markets. This paper concludes that the efficient markets hypothesis does not accurately describe U.S. stock market activity.

Publication Date

Spring 2005

Journal Title

Major Themes in Economics

Volume

7

Issue

1

First Page

3

Last Page

30

Copyright

©2005 by Major Themes in Economics

Creative Commons License

Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License.

Language

EN

File Format

application/pdf

Included in

Economics Commons

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