Seminar #5 Writeup

Financial Accounting Theory (5th Edition)

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Matt Steger Seminar #5 – Efficient Securities Markets September 8, 2009 The primary theme for today’s seminar centers on the definition of efficient securities markets and the implications that such markets have for financial reporting. Author Scott presents a discussion of these concepts by following the construct that William H. Beaver presented in his 1973 article entitled What Should be the FASB’s Objective? Yes. Much of the discussion that Scott presents to us is identical to Beaver’s. Scott attempts to point out the “logical inconsistency” found in the “fully informative” market price of a given security – something Beaver also writes about – through a discussion on liquidity traders or noise traders and how they are a set of variables whose buy/sell decisions (decisions which are supposedly made randomly) possess the ability to directly affect the market price of a security. Market prices affected like this are distorted accordingly and cannot fulfill the role of being fully informative. This sort of disinformation
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

This document was uploaded on 04/06/2010.

Ask a homework question - tutors are online