Security Markets Have Been Described as Random Walks and Efficient

question 38

Essay

Security markets have been described as random walks and efficient markets. What does each of these terms mean and how do they relate to the share market? What makes a market efficient and what are the consequences of efficiency for fundamental and technical analysis?

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Definitions:

Political Parties

Organizations that seek to attain political power within a government, usually by participating in electoral campaigns and organizing in the pursuit of common political goals.

Policy Stances

The positions or attitudes adopted by governments or organizations on certain public issues, especially in the form of laws, regulations, or actions.

First Consul

A title given to Napoleon Bonaparte in 1799, marking his significant political and military leadership in France.

French Republic

The official name of France as a democratic country, established in 1792 after the overthrow of the monarchy, currently in its Fifth Republic initiated in 1958.