If markets are efficient, share prices go up when there is positive information about a company, and go down when there is negative information about the company.

Question

Quizplus · Accepted Answer

This is the basic premise of the efficient market hypothesis, which states that all information available to the public is already reflected in the stock price, and therefore, it is not possible to consistently beat the market by exploiting any information asymmetry.

If Markets Are Efficient, Share Prices Go Up When There