Weak Form Efficiency Theoretical in nature, weak strain efficiency advocates assert that entire summary can be used to identify blood lines that be undervalued and overvalued. Therefore, keen investors looking for paying companies can earn profits by researching financial statements explanation of Technical Analysis Technical charting analysis is a way of accumulation and processing cost and volume information of a finicky security by applying mathematical equations and then plotting the resulting data onto graphs in order to predict future price movements. Unlike the heavy analysis, where the economic, geo-political factors or the financial health of a company be under scrutiny, technical analysis is only concerned with the price and trading volume of a security. In essence, technical analysis focuses on the effect of the previous price movements while fundamental analysis studies the causes that could affect the market. The first specification of efficient markets and their race to the randomness of prices for things traded in the market goes to Samuelson and Mandelbrot.

Samuelson has proved in 1965 that if a market has zero transaction costs, if either(a) available information is free to all interested parties, and if all market participants and authority participants have the same horizons and expectations about prices, the market will be efficient and prices will fluctuate randomly. According to the Random passport Theory, the changes in prices of stock show independent behavior and are dependent on the new pieces of information that are received but within themselves are independent of each other. Whenever a new price of information is received in the stock market, the market independently receives this information and it is independent and separate from all the other prices of information. For example, a stock is selling at Rs. 40 based on existing information known to all investors. Afterwards, the news of a strike in that company will... If you penury to get a full essay, order it on our website:
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