T12.18 Two Views on Market Efficiency
“ . . . in price movements . . . the sum of every scrap of knowledge available to Wall Street is reflected as far as the clearest vision in Wall Street can see.”
Charles Dow, founder of Dow-Jones, Inc. and first editor of The Wall Street Journal (1903)
“In an efficient market, prices ‘fully reflect’ available information.”
Professor Eugene Fama, financial economist (1976)