Revisiting Stock Market Efficiency -A Theoretical Perspectives

Abstract

The study of behaviour of stock prices and information dissemination plays an important role in the development of stock market and to ensure effective allocation of capital to the most productive sectors of economy. It is particularly, more sensitive in the context of Indian Economy being a developing one and there is immense need to boost the economic process by accumulating resources from private sectors. It is well documented in the financial literature that private sector flourishes in the presence of efficient capital market. In this study a rigorous attempt was put forth to find whether the trading activities in the stock markets are satiable to counter the informational impact on share price by different researches and also to further instigate the new folds needed for conducting research in extended manner. There are numerous studies available to address the level of efficiency pertaining to the stock market, though this study is intended to cover the most influential available literature.