This Finance survey examines (a) In general, absent any proprietary information, a retail equity investor cannot consistently make accurate predictions about whether the price of an individual stock will rise or fall on a given day; (b) In general, absent any proprietary information, a retail equity investor can expect to do better by holding a well-diversified, low-fee, passive index fund than by holding a few stocks
Keyword: stock prices
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This Finance survey examines (a) Allowing short selling of financial securities, such as stocks and government bonds, leads to prices that, on average, are closer to their fundamental values; (b) When short sellers start to establish substantial short positions in a stock, the stock is likely to have been overvalued; (c) Requiring investors to disclose short positions in a stock at the equivalent threshold as they are required to do for long positions would improve the informativeness of stock prices
This Finance survey examines (a) With some measures of concentration by market capitalization within broad US stock market indices at an all-time high, investors seeking a well-diversified passive equity portfolio should consider alternatives to market-cap-weighted indices.
This Finance survey examines (a) The SEC’s proposed new rule for stock orders from individual investors is likely to be effective in giving those investors better prices on their trades on average; (b) The new rule would improve the overall operation of the stock market
This Finance survey examines (a) The amount of passively invested funds has reached levels at which it has a measurable detrimental effect on market efficiency.
This Finance survey examines (a) Having companies run to maximize shareholder value creates significant negative externalities for workers and communities. (b) Appropriately managed corporations could create significantly greater value than they currently do for a range of stakeholders – including workers, suppliers, customers, and community members – with negligible impacts on shareholder value. (c) Effective mechanisms for boards of directors to ensure that CEOs act in ways that balance the interests of all stakeholders would be straightforward to introduce.
This week's European Economic Experts Panel statements:
A) Allowing short selling of financial securities, such as stocks and government bonds, leads to prices that, on average, are closer to their fundamental values.
B) Requiring investors to disclose short positions in a stock at the equivalent threshold as they are required to do for long positions would result in significantly less short selling.
C) Regulatory restrictions on short selling - such as no naked shorts, temporary bans in times of crisis - make it difficult for optimists and pessimists to have equal influence on asset prices.
This week's US Economic Experts Panel statements:
A) Bans on the short selling of financial securities, such as stocks and government bonds, would lead to prices that are further, on average, from their fundamental values.
B) Requiring investors to disclose short positions in a stock at the equivalent threshold as they are required to do for long positions would improve the accuracy of stock prices.
This week’s IGM European Economic Experts Panel statements:
A) Having companies run to maximize shareholder value creates significant negative externalities for workers and communities.
B) Appropriately managed corporations could create significantly greater value than they currently do for a range of stakeholders – including workers, suppliers, customers and community members – with small impacts on shareholder value.
C) Effective mechanisms for boards of directors to ensure that CEOs act in ways that balance the interests of all stakeholders would be straightforward to introduce.
This week’s IGM Economic Experts Panel statements:
A) Having companies run to maximize shareholder value creates significant negative externalities for workers and communities.
B) Appropriately managed corporations could create significantly greater value than they currently do for a range of stakeholders – including workers, suppliers, customers and community members – with negligible impacts on shareholder value.
C) Effective mechanisms for boards of directors to ensure that CEOs act in ways that balance the interests of all stakeholders would be straightforward to introduce.
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