PLEASE NOTE
Capital Ideas is now Chicago Booth Review but unfortunately original articles are no longer available. If you click through you will be taken to the Internet Archive site to find an archived copy.
Capital Ideas is now Chicago Booth Review but unfortunately original articles are no longer available. If you click through you will be taken to the Internet Archive site to find an archived copy.
What happens when important news hits the financial markets? Suppose a company reports earnings much higher than expected or announces a big acquisition. Traders and investors rush to digest the information and push stock prices to a level they think is consistent with what they have heard. But do they get it right? Do they react properly to the news they receive? Recent evidence suggests investors make systematic errors in processing new information that may be profitably exploited by others.
Content: Article
Authors: Nicholas Barberis, Robert W. Vishny
Source: Capital Ideas
Subject: Finance
Industry: Investing
Authors: Nicholas Barberis, Robert W. Vishny
Source: Capital Ideas
Subject: Finance
Industry: Investing
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