Here is the synopsis of our sample research paper on The Stock Market as an Efficient Market. Have the paper e-mailed to you 24/7/365.
Essay / Research Paper Abstract
This 6 page paper argues that the stock market may be seen as a very efficient market where share prices will always represent the underlying intrinsic value of the shares, even where there is an asymmetry of information. The paper uses the efficient market hypothesis (EMH), to explain this, relying on the ideas of Fama. The bibliography cites 5 sources.
Page Count:
6 pages (~225 words per page)
File: TS14_TEeffmar.rtf
Buy This Term Paper »
Unformatted sample text from the term paper:
changes and may fluctuate from moment to moment swinging widely where there is a fluctuation in the perceived value of the share. The price of a share represents what people
are prepared to pay for it, and as such may be seen to embody an efficient market ideal. Stock markets are an
immediate form of trade where supply and demand find an equilibrium in an immediate manner so sales are conducted in a very efficient manner. The rationalisation behind this is straightforward,
when there is a greater supply than demand the price will decrease so that the demand will increase, therefore is Company As shares are being sold by more people than
want to buy them the price will drop until there are enough buyers. If there is a higher demand than the supply, more people want to buy Company A
shares then want to sell, then the price will go up until some of the buyers drop out or ,more people want to sell at the higher price to equilibrium
may be found. In realty this operates not on a daily basis, but on a moment to moment basis, and the reason for the efficiency is that the market brings
together the buyers and sellers in a single arena where the market forces are left to operate. Therefore the operation of the forces is very effective, but there are also
some less rational and effective influences which do not influence the effect of the market, but does influence the way in which the shares are traded and the prices that
people will pay for certain shares, and impacts on the intrinsic value. If we are to argue that the stock market is efficient then we need to understand these influences.
...