At 11:24 AM 4/2/2002 -0800, you wrote: >Information does not instantly get propagated to all participants in a >market, so there are profit opportunities for those who study market >patterns. > It is not necessary that all market participants be informed for a capital market to be informationally efficient. What is necessary is that there be some informed traders that will spot transitory mispricing and that those informed traders be able to act on the information quickly (i.e., that transaction costs be low). The jury is still out on the scientific evidence supportive of or contradictory to efficient market theory. It is noteworthy though, that evidence of market efficiency anomolies seldom demonstrates the existence of trading rules that yield genuine abnormal profits.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Kevin D. Sachs, Ph.D. Assistant Professor phone: 513.556.7198 University of Cincinnati fax: 513.556.4891 Department of Accounting/IS email: [EMAIL PROTECTED] 302 Lindner Hall, P.O.Box 210211 Cincinnati, OH 45221-0211 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
