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| TITLE | The Stock Market as Information Processor vs. Speculation Machine |
|---|---|
| ABSTRACT | This study discusses whether stock markets are more efficient information processing machines or speculative systems conditioned by the behaviour of investors. The paper examines the major financial theories such as the Efficient Market Hypothesis proposed by Eugene Fama arguing that the stock price is based on the information at hand. It also takes into account findings of behavioural financial studies conducted by a number of scholars like Robert Shiller and Daniel Kahneman, who emphasise on the power of psychological biases and herd behaviour. Based on secondary data on scholarly literature, the research concludes that the stock markets exhibit the characteristics of informational efficiency and speculative behaviour with regard to market environments and investor behaviour. |
| AUTHOR | Saurish Bindals Pathways World School, Gurugram, Haryana, India |
| PUBLICATION DATE | 2026-03-18 12:56:37 |
| VOLUME | 14 |
| ISSUE | 1 |
| DOI | DOI: 10.15662/IJMSERH.2026.1401025 |
| 25_The Stock Market as Information Processor vs. Speculation Machine.pdf | |
| KEYWORDS | |
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