The Inefficient Stock Market

The Inefficient Stock Market
Author: Robert A. Haugen
Publisher:
Total Pages: 164
Release: 1999
Genre: Business & Economics
ISBN:
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Sparked with wry wit and humor that is sure to capture and sustain the interest of students, this clever and insightful text provides clear and undeniable evidence that the stock market is, in the author's view, inefficient - and that important aspects of market behavior can not be explained by models based on rational economic behavior.

Inefficient Markets

Inefficient Markets
Author: Andrei Shleifer
Publisher: OUP Oxford
Total Pages: 225
Release: 2000-03-09
Genre: Business & Economics
ISBN: 0191606898
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The efficient markets hypothesis has been the central proposition in finance for nearly thirty years. It states that securities prices in financial markets must equal fundamental values, either because all investors are rational or because arbitrage eliminates pricing anomalies. This book describes an alternative approach to the study of financial markets: behavioral finance. This approach starts with an observation that the assumptions of investor rationality and perfect arbitrage are overwhelmingly contradicted by both psychological and institutional evidence. In actual financial markets, less than fully rational investors trade against arbitrageurs whose resources are limited by risk aversion, short horizons, and agency problems. The book presents and empirically evaluates models of such inefficient markets. Behavioral finance models both explain the available financial data better than does the efficient markets hypothesis and generate new empirical predictions. These models can account for such anomalies as the superior performance of value stocks, the closed end fund puzzle, the high returns on stocks included in market indices, the persistence of stock price bubbles, and even the collapse of several well-known hedge funds in 1998. By summarizing and expanding the research in behavioral finance, the book builds a new theoretical and empirical foundation for the economic analysis of real-world markets.

The Handbook of Equity Market Anomalies

The Handbook of Equity Market Anomalies
Author: Leonard Zacks
Publisher: John Wiley & Sons
Total Pages: 352
Release: 2011-08-24
Genre: Business & Economics
ISBN: 1118127765
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Investment pioneer Len Zacks presents the latest academic research on how to beat the market using equity anomalies The Handbook of Equity Market Anomalies organizes and summarizes research carried out by hundreds of finance and accounting professors over the last twenty years to identify and measure equity market inefficiencies and provides self-directed individual investors with a framework for incorporating the results of this research into their own investment processes. Edited by Len Zacks, CEO of Zacks Investment Research, and written by leading professors who have performed groundbreaking research on specific anomalies, this book succinctly summarizes the most important anomalies that savvy investors have used for decades to beat the market. Some of the anomalies addressed include the accrual anomaly, net stock anomalies, fundamental anomalies, estimate revisions, changes in and levels of broker recommendations, earnings-per-share surprises, insider trading, price momentum and technical analysis, value and size anomalies, and several seasonal anomalies. This reliable resource also provides insights on how to best use the various anomalies in both market neutral and in long investor portfolios. A treasure trove of investment research and wisdom, the book will save you literally thousands of hours by distilling the essence of twenty years of academic research into eleven clear chapters and providing the framework and conviction to develop market-beating strategies. Strips the academic jargon from the research and highlights the actual returns generated by the anomalies, and documented in the academic literature Provides a theoretical framework within which to understand the concepts of risk adjusted returns and market inefficiencies Anomalies are selected by Len Zacks, a pioneer in the field of investing As the founder of Zacks Investment Research, Len Zacks pioneered the concept of the earnings-per-share surprise in 1982 and developed the Zacks Rank, one of the first anomaly-based stock selection tools. Today, his firm manages U.S. equities for individual and institutional investors and provides investment software and investment data to all types of investors. Now, with his new book, he shows you what it takes to build a quant process to outperform an index based on academically documented market inefficiencies and anomalies.

Efficiently Inefficient

Efficiently Inefficient
Author: Lasse Heje Pedersen
Publisher: Princeton University Press
Total Pages: 368
Release: 2019-09-17
Genre: Business & Economics
ISBN: 0691196095
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Efficiently Inefficient describes the key trading strategies used by hedge funds and demystifies the secret world of active investing. Leading financial economist Lasse Heje Pedersen combines the latest research with real-world examples and interviews with top hedge fund managers to show how certain trading strategies make money--and why they sometimes don't. Pedersen views markets as neither perfectly efficient nor completely inefficient. Rather, they are inefficient enough that money managers can be compensated for their costs through the profits of their trading strategies and efficient enough that the profits after costs do not encourage additional active investing. Understanding how to trade in this efficiently inefficient market provides a new, engaging way to learn finance. Pedersen analyzes how the market price of stocks and bonds can differ from the model price, leading to new perspectives on the relationship between trading results and finance theory. He explores several different areas in depth--fundamental tools for investment management, equity strategies, macro strategies, and arbitrage strategies--and he looks at such diverse topics as portfolio choice, risk management, equity valuation, and yield curve logic. The book's strategies are illuminated further by interviews with leading hedge fund managers: Lee Ainslie, Cliff Asness, Jim Chanos, Ken Griffin, David Harding, John Paulson, Myron Scholes, and George Soros.

Inefficient Market Theory

Inefficient Market Theory
Author: Jeffrey C Hood
Publisher: Jeff Hood
Total Pages: 222
Release: 2014-10-08
Genre:
ISBN: 9780692273944
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Efficient Market Theory is based largely on the concept of crowd wisdom - that a large group of people casting their collective votes in the stock market produces correct stock prices and hence an "efficient market." However, we know from experience that the stock market is not entirely efficient, and sometimes produces wildly incorrect prices. This book explores the various criteria that are required for crowd wisdom to manifest in a financial marketplace, these being: 1) incentives; 2) independence; 3) diversity of opinion; 4) decentralization; 5) knowledge; and 6) rationality. A fundamental premise of this book is that a proper understanding of crowd wisdom criteria, and the ability to detect when these criteria are lacking in the market, is a significant benefit in identifying mispriced securities. In particular, this book explores the various behavioral and psychological biases that affect market participants, what we call the "Foolishness of the Crowd." The predictability of this Foolishness, i.e., the predictability of these biases in a crowd setting such as the stock market, produces reliable offsets from crowd wisdom, i.e., stock mispricings. This book then proposes an investment framework based in part on the investor's "inefficient rationale" - his articulated understanding, based on the above crowd wisdom criteria, as to exactly why the market is mispricing a particular stock. The investment framework also utilizes the wisdom from a select value investing crowd to both identify and help confirm good investment opportunities. The investor who adheres to this investment framework essentially places the full benefit of crowd wisdom and knowledge into his corner, including both the wisdom of the crowd and predictable departures from this wisdom.

Beat the Inefficient Market

Beat the Inefficient Market
Author: Leo Vian
Publisher: Leo Vian
Total Pages: 131
Release:
Genre: Business & Economics
ISBN:
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⭐4.9 on Amazon (Read 139 reviews: www.amazon.com/dp/B0C6WD81X8#customerReviews) Unlock the Secrets of Stock Market Success with Leo Vian's Revolutionary Guide Dive into the world of stock investing with "Beat the Inefficient Market," your ultimate roadmap to navigating the complexities of the stock market with ease and confidence. Whether you're a seasoned investor or just starting out, Leo Vian's innovative strategies and clear, accessible guidance will transform your approach to investing. Why This Book Stands Out: ➢ Practical and Accessible: With a focus on real-world application, this book breaks down complex concepts into understandable terms, complete with examples and resources. ➢ Innovative Strategies: Discover seven unique stock investment systems, ranging from simple, formula-based approaches to sophisticated methods that leverage your investment talent. ➢ Evidence-Based Investing: Learn to make smarter investment decisions based on solid evidence, avoiding common pitfalls and myths. What You'll Learn: ➢ The fundamentals of stock investing, presented in a clear and engaging manner. ➢ Practical investment systems that can be applied by anyone, regardless of experience. ➢ How to exploit the inefficiencies of the stock market for superior returns. Detailed Investment Systems: This book presents and explains 7 Stock Investment Systems with increasing complexity, profit potential, and demands on an investor's resources, such as time. Systems 1-4: ➢ Mechanical application based on investment formulas ➢ Results independent of investment talent ➢ Return of the systems ranges between 7% and 15% per year Systems 5-7: ➢ Further increasing complexity and profitability ➢ Space for actualizing investment talent ➢ Return of the systems ranges between 17% and over 20% per year Praise for "Beat the Inefficient Market": "Beat the Inefficient Market: Investing in Stocks" by Leo Vian is a five-star masterpiece that deserves a place in every investor's library. Whether you're a novice looking to start your investment journey or an experienced investor seeking to refine your approach, this book is an indispensable resource. Leo Vian's expertise and passion for investing are evident on every page, making this book a must-read for anyone seeking financial prosperity through the stock market. Prepare to be enlightened, inspired, and equipped with the knowledge to navigate the market with confidence and success." - Harvey Stills, investor Take the First Step Towards Investment Mastery: Don't miss out on the opportunity to revolutionize your investment strategy. With "Beat the Inefficient Market," you'll gain the knowledge and tools needed to achieve long-term success in the stock market. Grab Your Copy Now and Start Your Journey to Financial Freedom!

Adaptive Markets

Adaptive Markets
Author: Andrew W. Lo
Publisher: Princeton University Press
Total Pages: 503
Release: 2019-05-14
Genre: Business & Economics
ISBN: 069119680X
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A new, evolutionary explanation of markets and investor behavior Half of all Americans have money in the stock market, yet economists can’t agree on whether investors and markets are rational and efficient, as modern financial theory assumes, or irrational and inefficient, as behavioral economists believe. The debate is one of the biggest in economics, and the value or futility of investment management and financial regulation hangs on the answer. In this groundbreaking book, Andrew Lo transforms the debate with a powerful new framework in which rationality and irrationality coexist—the Adaptive Markets Hypothesis. Drawing on psychology, evolutionary biology, neuroscience, artificial intelligence, and other fields, Adaptive Markets shows that the theory of market efficiency is incomplete. When markets are unstable, investors react instinctively, creating inefficiencies for others to exploit. Lo’s new paradigm explains how financial evolution shapes behavior and markets at the speed of thought—a fact revealed by swings between stability and crisis, profit and loss, and innovation and regulation. An ambitious new answer to fundamental questions about economics and investing, Adaptive Markets is essential reading for anyone who wants to understand how markets really work.

Stock Market Efficiency, Insider Dealing and Market Abuse

Stock Market Efficiency, Insider Dealing and Market Abuse
Author: Mr Paul Barnes
Publisher: Gower Publishing, Ltd.
Total Pages: 228
Release: 2012-09-28
Genre: Law
ISBN: 1409458709
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The recent turbulence in the stock market has brought into question the way, and prices at which, shares are traded, and how the market effectively values companies. It has also raised public concern as to the way by which dealers and investors take advantage of changes in market prices. A number of high profile criminal prosecutions of insider dealing and market abuse and the frequent claims of other instances, combined with the changes in regulations resulting in a more aggressive and proactive stance by the various regulators, have brought the issue under the spotlight. This book discusses what makes stock market efficiency so important for the economy, looks at the theory and issues that underpin market abuse and why an offence often dismissed as a victimless crime is punished so severely. It explores the impact of perception and other factors that distort the market and outlines the extent of abuse. Regulators, lawyers, company officials, investigators, professional advisers and of course investors, both professional and otherwise will find this a helpful guide to the underlying elements of fraud and market manipulation.

Inefficient Markets:An Introduction to Behavioral Finance

Inefficient Markets:An Introduction to Behavioral Finance
Author: Andrei Shleifer
Publisher: OUP Oxford
Total Pages: 224
Release: 2000-03-09
Genre: Business & Economics
ISBN: 9780198292272
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The efficient markets hypothesis has been the central proposition in finance for nearly thirty years. It states that securities prices in financial markets must equal fundamental values, either because all investors are rational or because arbitrage eliminates pricing anomalies.This book describes an alternative approach to the study of financial markets: behavioral finance. This approach starts with an observation that the assumptions of investor rationality and perfect arbitrage are overwhelmingly contradicted by both psychological and institutional evidence. In actual financial markets, less than fully rational investors trade against arbitrageurs whose resources are limited by risk aversion, short horizons, and agency problems. The book presents and empiricallyevaluates models of such inefficient markets.Behavioral finance models both explain the available financial data better than does the efficient markets hypothesis and generate new empirical predictions. These models can account for such anomalies as the superior performance of value stocks, the closed end fund puzzle, the high returns on stocks included in market indices, the persistence of stock price bubbles, and even the collapse of several well-known hedge funds in 1998. By summarizing and expanding the research in behavioral finance,the book builds a new theoretical and empirical foundation for the economic analysis of real-world markets.

Inefficient Markets

Inefficient Markets
Author: Ian Joseph Rivero
Publisher:
Total Pages: 64
Release: 2010
Genre:
ISBN:
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As the amount of money being circulated in the United States stock market increases, investors are presented with more opportunity to make a profit. Previous studies contradict one another on whether or not pattern recognition can yield above-average risk-adjusted returns in the market. The current study examines whether or not the Stock Broker's Almanac list of hot months can be implemented to identify a consistent pattern in the stock market. The numerical values collected for the stocks were tested and analyzed to determine whether the use of hot months is a profitable investment strategy in the stock market. Results indicate that seasonal investing may in fact be a successful strategy if properly applied to the United States stock market.