Efficient Market Hypothesis Confirmed: Stock Prices Reflect All Valuable Information.
The efficient market hypothesis suggests that in a well-functioning stock market, all valuable information is quickly reflected in stock prices. A study on China's stock market found that this hypothesis is partially true. By analyzing trading data from three companies, researchers confirmed that it is difficult for investors to consistently beat the market by analyzing past prices, unless there is market manipulation. This finding adds to the ongoing debate about whether stock markets are truly efficient.