Market Efficiency and Facebook

Wow  Facebook Inc. is all set for its initial public offering price range of between the high-$20s to the mid-$30s per share, The Wall Street Journal reported Thursday, citing unnamed sources. The social media company also seeks a valuation of $85 billion to $95 billion.

The above head line encourages me to write on the controversial topic  Market Efficiency. Capital markets are markets for trading in long-term financial instruments. Capital markets have two main functions: as primary market they provide the means whereby long-term funds can be raised; as secondary markets they provide the investors to sell Continue reading “Market Efficiency and Facebook”