Unit2.Project-IvanRivera6-MT481 Financial Markets

Unit2.Project-IvanRivera6-MT481 Financial Markets - MT481...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
MT481 Financial Markets Prof. D. Weaver By Ivan Rivera Chapter 1 Questions and Application: 4,10 and 14 pg. 23-24 4. Efficient Markets Explain the meaning of efficient markets. Why might we expect markets to be efficient most of the time? In recent years, several securities firms have been guilty of using inside information when purchasing securities, thereby achieving returns well above the norm (even when accounting for risk). Does this suggest that the security markets are not efficient? Explain. ( Answer ) Efficient markets refer to a market condition where consumers and market participants have complete and accurate info about the market. This helps for good business there is no insider trading happening. Most of us expect the markets to be efficient and accurate most of the time as the rules and regulations prohibit insider trading and support fair play but the consequences are not clear and accountability is unfair naming one individual only when it could have been a group or the company itself. In recent years, several securities firms have been guilty of using inside information when purchasing securities, thereby achieving returns well above the norm (even when
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 09/22/2011 for the course BUS MT400 taught by Professor Weaver during the Spring '11 term at Kaplan University.

Page1 / 4

Unit2.Project-IvanRivera6-MT481 Financial Markets - MT481...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online