If the stock market is efficient, then

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Quizplus · Accepted Answer

If the stock market is efficient, there is no specific time or date that will guarantee profit on a stock purchase. The market price reflects all available information and any potential gains on a stock purchase would be due to luck or chance, rather than market inefficiencies. Therefore, none of the choices listed would be the best time to buy a stock in an efficient market. If the stock market is efficient, then all available information about a company is already reflected in the stock price. Therefore, there is no specific best time to buy a stock based on dividend dates or announcements of reverse splits as these factors are already accounted for in the stock price. Efficient market theory suggests that attempting to time the market or identify undervalued stocks is not a successful investment strategy.

If the Stock Market Is Efficient, Then