The Need For Capital Market Regulation: Three Forms of Efficient Market Hypothesis

What is it about?

Article describes and illustrates why there is greater need for financial regulation in respect of certain areas and activities within global financial markets. It also introduces the forms of Efficient Market Hypothesis – namely the strong, semi strong and weak forms

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Why is it important?

As highlighted by Fama, “ if the random walk theory is valid and if security exchanges are efficient markets, then stock prices at any point in time will represent good estimates of intrinsic or fundamental values.” This is thus of vital relevance and importance to investors and analysts alike.