Efficient Capital Markets¶
Fama, E. F. (1970). Efficient Capital Markets: A Review of Theory and Empirical Work. The Journal of Finance, 25(2), 383-417.
Cited by¶
10 citations across 10 artifacts.
Each citation links to the sentence it supports in the citing article.
Primes¶
- Anticipatory Neutralization
- Arbitrage (Finance)
- Fama (1970) provides the canonical taxonomy underwriting this view, distinguishing weak-form, semi-strong-form, and strong-form efficient capital markets and arguing that the theoretical and empirical evidence is broadly consistent with prices fully reflecting available information—precisely because arbitrage drives prices toward fundamentals.
This sourceCanonical taxonomy of weak-form, semi-strong-form, and strong-form market efficiency; argues that theory and evidence are broadly consistent with prices fully reflecting available information, with arbitrage as the implicit enforcement mechanism.
- Fama (1970) provides the canonical taxonomy underwriting this view, distinguishing weak-form, semi-strong-form, and strong-form efficient capital markets and arguing that the theoretical and empirical evidence is broadly consistent with prices fully reflecting available information—precisely because arbitrage drives prices toward fundamentals.
- Arbitrage (Generalized)
- As Fama (1970) formalizes in his Efficient Markets Hypothesis review, the very process by which prices come to reflect available information is arbitrage activity—agents trading on informational and valuation gaps until those gaps are eliminated.
This sourceCanonical taxonomy of weak-form, semi-strong-form, and strong-form market efficiency; argues that theory and evidence broadly support prices fully reflecting available information, with arbitrage as the implicit enforcement mechanism.
- As Fama (1970) formalizes in his Efficient Markets Hypothesis review, the very process by which prices come to reflect available information is arbitrage activity—agents trading on informational and valuation gaps until those gaps are eliminated.
- Efficient Market Hypothesis (EMH)
- The efficient market hypothesis, as formalized by Fama (1970), is the foundational claim that asset prices in competitive financial markets incorporate all available relevant information at any given moment, such that no trading strategy exploiting that information set can systematically generate risk-adjusted excess returns.
This sourceCanonical statement of EMH and the weak/semi-strong/strong taxonomy, with arbitrage as the implicit enforcement mechanism — directly supports the Core-Idea marker 211.
- The efficient market hypothesis, as formalized by Fama (1970), is the foundational claim that asset prices in competitive financial markets incorporate all available relevant information at any given moment, such that no trading strategy exploiting that information set can systematically generate risk-adjusted excess returns.
- Frictionless Benchmark Reasoning
- Finance and microeconomics: the efficient-market hypothesis (prices reflect all information under frictionless trading) and perfect competition (price equals marginal cost) each generate a programme — market microstructure, industrial organisation — built as a catalog of named departures (spreads, limits to arbitrage, market power, entry barriers).
This sourceStates the efficient-market hypothesis as the frictionless-trading benchmark generating market-microstructure and limits-to-arbitrage as its departure catalogue.
- Finance and microeconomics: the efficient-market hypothesis (prices reflect all information under frictionless trading) and perfect competition (price equals marginal cost) each generate a programme — market microstructure, industrial organisation — built as a catalog of named departures (spreads, limits to arbitrage, market power, entry barriers).
- Nash Equilibrium
- Past-State Contamination
- And it supplies no threshold for when information counts as available — whether a document filed but unread, or a figure computable but never computed, was within reach at t is a question the domain has to settle for itself.
This sourceShows a field legislating its own availability line, defining weak, semi-strong and strong information sets so that what counted as reachable at a date becomes a stated convention rather than a fact the data supply.
- And it supplies no threshold for when information counts as available — whether a document filed but unread, or a figure computable but never computed, was within reach at t is a question the domain has to settle for itself.
- Price Mechanism
- The efficient-markets hypothesis (Fama 1970
This sourceCanonical taxonomy of weak-form, semi-strong-form, and strong-form market efficiency; argues that theory and evidence broadly support prices fully reflecting available information, with arbitrage as the implicit enforcement mechanism.
- The efficient-markets hypothesis (Fama 1970
- Risk–Return Tradeoff
- (APT), Fama
This sourceCanonical taxonomy of weak-form, semi-strong-form, and strong-form market efficiency; argues that theory and evidence broadly support prices fully reflecting available information, with arbitrage as the implicit enforcement mechanism.
Supported in partVerified against the publisher's abstract
Fama 1970 is confirmed as a real Journal of Finance review of market efficiency, but the readable abstract states nothing about the formal risk-return tradeoff lineage.
“Eugene F. Fama, Efficient Capital Markets: A Review of Theory and Empirical Work, The Journal of Finance, Vol. 25, No. 2, Papers and Proceedings of the Twenty-Eighth Annual Meeting of the American Finance Association New York, N.Y. December, 28-30, 1969 (May, 1970), pp. 383-417”
- (APT), Fama
Mechanisms¶
- Information Arbitrage Workflow
- Its structural adversary is that markets reflect information: the efficient-market hypothesis is the reason edges decay, and the danger is discovering you were the last to know rather than the first.
This sourceDefines an efficient market as one in which prices reflect available information, limiting durable gains from already-public information.
- Its structural adversary is that markets reflect information: the efficient-market hypothesis is the reason edges decay, and the danger is discovering you were the last to know rather than the first.
Verification¶
Does it exist? Confirmed. This work's DOI resolves to a registered record, which fixes its identity. That is all it fixes.
Does it back the claim? Read against the text for 1 of 10 citations: 1 supported in part. Each verdict is shown under its citation below, with what in the work backs the sentence.
Support is checked per citation rather than per work — the same source can be cited soundly in one article and wrongly in another. Per-citation recording began recently, so a citation with no recorded check is a gap in the record rather than evidence it went unchecked.
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Links previously used in the corpus¶
Before the registry existed this work was also linked 1 other way.
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