Efficient Capital Markets A review of theory and empirical work
American Finance Association
Efficient Capital Markets: A Review of Theory and Empirical Work
Author(s): Eugene F. Fama
Source: The Journal of Finance, Vol. 25, No. 2, Papers and Proceedings of the Twenty-Eighth
Annual Meeting of the American Finance Association New York, N.Y. December, 28-30, 1969
(May, 1970), pp. 383-417
Published by: Wiley for the American Finance Association
Stable URL: http://www.jstor.org/stable/2325486 .
Accessed: 02/08/2014 05:59
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SESSION TOPIC: STOCK MARKET PRICE BEHAVIOR
SESSION CHAIRMAN: BURTON G. MALKIEL
EFFICIENT CAPITAL MARKETS: A REVIEW OF
THEORY AND EMPIRICAL WORK*
EUGENE
I.
F. FAMA**
INTRODUCTION
THE PRIMARYROLE of the capital market is allocation of ownership of the
economy'scapitalstock.In generalterms,theideal is a marketin whichprices provideaccuratesignalsforresourceallocation: that is, a marketin which decisions,and investorscan choose firmscan make production-investment amongthe securitiesthat representownershipof firms'activitiesunderthe assumptionthat securitypricesat any time "fullyreflect"all available inA marketin whichpricesalways"fullyreflect"availableinformaformation. tionis called"efficient."
This paper reviewsthe theoreticaland
Efficient Capital Markets: A Review of Theory and Empirical Work
Author(s): Eugene F. Fama
Source: The Journal of Finance, Vol. 25, No. 2, Papers and Proceedings of the Twenty-Eighth
Annual Meeting of the American Finance Association New York, N.Y. December, 28-30, 1969
(May, 1970), pp. 383-417
Published by: Wiley for the American Finance Association
Stable URL: http://www.jstor.org/stable/2325486 .
Accessed: 02/08/2014 05:59
Your use of the JSTOR archive indicates your acceptance of the Terms & Conditions of Use, available at . http://www.jstor.org/page/info/about/policies/terms.jsp .
JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range of content in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new forms of scholarship. For more information about JSTOR, please contact support@jstor.org.
.
Wiley and American Finance Association are collaborating with JSTOR to digitize, preserve and extend access to The Journal of Finance.
http://www.jstor.org
This content downloaded from 14.139.227.82 on Sat, 2 Aug 2014 05:59:42 AM
All use subject to JSTOR Terms and Conditions
SESSION TOPIC: STOCK MARKET PRICE BEHAVIOR
SESSION CHAIRMAN: BURTON G. MALKIEL
EFFICIENT CAPITAL MARKETS: A REVIEW OF
THEORY AND EMPIRICAL WORK*
EUGENE
I.
F. FAMA**
INTRODUCTION
THE PRIMARYROLE of the capital market is allocation of ownership of the
economy'scapitalstock.In generalterms,theideal is a marketin whichprices provideaccuratesignalsforresourceallocation: that is, a marketin which decisions,and investorscan choose firmscan make production-investment amongthe securitiesthat representownershipof firms'activitiesunderthe assumptionthat securitypricesat any time "fullyreflect"all available inA marketin whichpricesalways"fullyreflect"availableinformaformation. tionis called"efficient."
This paper reviewsthe theoreticaland
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