Efficient Capital Market Theory and its Implications for Investment Decision Making in Financial Markets

Dinasti International Journal of Economics Finance & Accounting, Год журнала: 2025, Номер 5(6), С. 5963 - 5971

Опубликована: Янв. 14, 2025

The Efficient Capital Market (ECM) theory is an important foundation in the understanding of modern financial markets, which states that asset prices reflect all available information. This article aims to analyze implications ECM on investment decision-making, as well explore differences between passive and active strategies context efficient market. method used a literature review, includes analysis previous research results market efficiency investor behavior. Theory study have significant impact decision-making markets. By information, both public private, investors can be more prudent choosing right strategy. In market, approaches, such index funds, are often profitable compared strategies, given their lower costs manageable risks. these findings emphasize importance investors' principles, help them adopt rational data-driven avoid decisions influenced by emotions. Thus, not only academic theory, but also practical guide improve

Язык: Английский

Governance, foreign investment, and growth: the impact of governance indicators, foreign direct investment, economic expansion, and industrialization on carbon emissions

SN Business & Economics, Год журнала: 2024, Номер 4(12)

Опубликована: Ноя. 5, 2024

Язык: Английский