Business, Management and Accounting
4 years ago

Efficient market theory leads to injustice in securities fraud cases

Emory law journal
Does the Efficient Market Theory Help Us Do Justice in a Time of Madness
William O. Fisher

Paper Summary

The efficient market theory is used in securities fraud cases to determine if stock prices reflect all available information. When stock prices no longer reflect company values, as seen during the Internet bubble, the theory may lead to unjust outcomes in legal cases.

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