Discuss the significance of the efficient markets hypothesis to your understanding of financial reporting. Discuss the role...

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Discuss the significance of the efficient marketshypothesis to your understanding of financialreporting. Discuss the role of financial reporting inan efficient market.

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Discuss the significance of the efficient markets hypothesis to your understanding of financial reporting Information can be classified as two types depending upon availability Private known to select few Public Known to all Information can be of two types Historical relates to past Futuristic related to future expected performance of forecast Market efficiency refers to the extent all the information available public as well as private on the security is factored in its price Efficient markets are the markets wherein all the stock related information is factored in the stock prices The efficient market hypothesis EMH classifies markets in three forms 1    See Answer
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Discuss the significance of the efficient marketshypothesis to your understanding of financialreporting. Discuss the role of financial reporting inan efficient market.

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