EFFICIENT MARKET THEORY Definition

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EFFICIENT MARKET THEORY is the hypothesis that market prices reflect the knowledge and expectations of all investors. Within this theory, investors who adhere to it believe it to be highly improbable that market movement can be predicted, i.e., using darts to chose stocks are just as effective as stock or market analysis.

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UNFAVORABLE VARIANCE is the opposite of favorable variance. See FAVORABLE VARIANCE.

K as the fifth letter of a Nasdaq stock symbol indicates that the issue has no voting rights.

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