Is the stock market efficient - 1200 words, zero plag

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fghqlabj2019

Humanities

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is the stock market efficient? why or why not?(5 sources)

how does behavioral finance support or contradict the idea of me?(2 sources)

please indicate the URL of the sources(references), use google scholar for referencing

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Explanation & Answer

Attached.

Running head: STOCK MARKET

STOCK MARKET
Student’s Name
Institution
Date

1

STOCK MARKET
Stock Market
Is the stock market efficient?
The stock market is an exchange platform where buyers and sellers of various stock

options meet and transact. The efficiency of the market is measured by the level of benefits users
derive from trading. However, businesses are prone to experiencing risks and the stock market is
not an exception. Therefore, every investor in the stock market must perform an analysis and
study on the market trend before investing. The stock market offers insights into the trending and
booming business within the market for better and promising returns (Westbrook, 2015). During
the low season (for seasonal businesses), most investors withdraw their deposits on the stocks for
other more generating activities to help maintain steady cash flow.
Making money in the stock market
Because the main objective of any investor venturing into the stock market is making
money, the public should stop thinking about market efficiency and concentrate on matters that
can make the market make money to investors. Considering the target for both the individual
investor and professional money managers, they do not mane or generate money above average
on any period of trading. The concept of generating or making money from the stock market
relies greatly on the strategy of buying and selling when the market conditions are favorable.
Therefore, the stock market can help make money by purchasing shares or stock during the low
season and hoard for the peak season to sell (Lee, & So, 2015). Under such a strategy, the
investors or professional money managers can be assured of generating better returns from...


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