A review of the efficiency of the JSE Securities Exchange
Date
2011-06-24
Authors
Wood, Adrian Michael
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Abstract
The ability of stock markets to function and operate efficiently has long been a
question posed by academics and investors alike. In an efficient market, all
information is reflected within share prices and therefore leaves no chance for
economically viable arbitrage opportunities. Although this notion has been
supported by the Efficient Market Hypothesis, it has come under scrutiny over the
last three decades.
This report has attempted to establish the extent to which the JSE Securities
Exchange is an efficient market, based on the outcomes of previous empirical
studies done from 1974 and 2006. Using the Historical Research Methodology, it
has been found that overall the JSE Securities Exchange operates as an efficient
market, in all forms of the Efficient Market Hypothesis. Along with this conclusion
however, is an indication that the market also show signs of inefficiencies for
certain stock types, which may have been exploited by shrewd investors
Description
MBA - WBS
Keywords
Johannesburg Securities Exchange