Stock exchange is a market for selling and buying the public companies shares. There are lot of shares trading in the market per a single day. In 2011, it’s more than $80Trillion per day. The global financial market developed in 1980s and 1990s, before 1980s there are many barriers to move to the global market such as capital barriers and government restrictions. The global financial market has to help for the investors, companies and economy. The companies have to access the capital, opportunity to expand through acquisition and growing young companies to obtain finance and market attaches a price to risk.
The stock market efficiency is the extent to which share prices at all times fairly reflect all relevant available information. The market efficiency can be weak, semi and strong form. In the recent report stated Moss Boss shares surged more than 14% to 27.25p after the company announced its was selling its 15 Hugo Boss stores. Moss Bros will sell the stores back to Hugo Boss for £16.5m, ending a 16-year franchise deal. Because they want to focus on their core stores and right to move strategically and operationally. The Moss Bros made a loss from this franchise around £0.3 million for the year.
Looking at recent example, the shell’s share price was fall by 3% in a single day. They have release there reported profit, but the profit around double compare to last year. The perfect information does not work in the market. But the price of the oil has risen by 15% compare to previous year. The investors have not happy about the profit. It would suggest that even trying to predict share price movement is difficult in the market.
In the Tuner report says, stock market pricing is individual pricing not a rational. The shell’s share price a surprising thing. This is an unpredictable.
With the level of uncertainty, can stock market be seen anything more than speculative gambling?
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