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The Four Building Blocks of a Competitive Advantage Are

question 67

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The four building blocks of a competitive advantage are:


Definitions:

Weak-Form Market Efficiency

A form of market efficiency where all past trading information is already reflected in stock prices, assuming that investors cannot earn excess returns by analyzing historical price trends.

Strong-Form Market Efficiency

Describes a market where all information, public and private, is reflected in stock prices, and nobody can achieve superior gains.

Market Value

The current quoted price at which an asset or a service can be bought or sold.

Intrinsic Value

The inherent worth of an asset, not necessarily its market price, often calculated through fundamental analysis.

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