Not sure if this is somehow a real counterexample to the efficient market hypothesis, or if I’m overfitting or selectively remembering cases where the pattern holds.
The EMH requires 0 cost of trading and 0 cost of information, and only requires that markets converge, not that they converge instantaneously.
Third option: this isn’t a counterexample to the efficient market hypothesis. EMH + counterexamples to overstated news[1] taking slightly longer to disseminate than the original news[1] nicely explains the effect.
The EMH requires 0 cost of trading and 0 cost of information, and only requires that markets converge, not that they converge instantaneously.
Third option: this isn’t a counterexample to the efficient market hypothesis. EMH + counterexamples to overstated news[1] taking slightly longer to disseminate than the original news[1] nicely explains the effect.
Forth option: [2]
read: information becoming public
This is a joke, to be clear.