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I'm not sure what one has to do with the other? Would the market be
more efficient or less efficient if the market cap changed 50% in a
matter of seconds?
Suppose the "Mona Lisa" were up for auction. The bids might drop
significantly if a rumor started that the painting being auctioned off
was a fake. What should be the "efficient" reaction to the rumor,
given that the validity of the information may be suspect? Fear and
greed will drive the reaction, since there is no immediate
confirmation of the relevant information.
On 12/4/06, dalengo <dalengo@xxxxxxxxx> wrote:
>
> Markets are obviously not 'efficient', how they can be if a market
> cap of large companies can change over 50% is a matter of months?
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