Sat 17 Jun 2020
Efficient Market Hypothesis: Current State of Belief
The Efficient Market Hypothesis continues to impede understanding of how capital markets work. The front-page article in the WSJ of June 12, 2020, announcing record levels of stock buybacks, continued to promote a common misperception that stock repurchases enhance equity prices by the following mechanism: By reducing the number of shares outstanding through buybacks, earnings per share […]