| bubble theory | Security prices sometimes move wildly above their fundamental values.
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| efficient-market hypothesis | The prices of securities fully reflect available information. Investors buying bonds and stocks in an efficient market should expect to obtain an equilibrium rate of return. Firms should expect to receive the "fair" value (present value) for the securities they sell.
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| market capitalization | Price per share of stock multiplied by the number of shares outstanding.
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| random walk | Theory that stock price changes from day to day are at random; the changes are independent of each other and have the same probability distribution.
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| semistrong-form efficiency | Theory that the market is efficient with respect to all publicly available information.
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| strong-form efficiency | Theory that the market is efficient with respect to all available information, public or private.
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| weak-form efficiency | Theory that the market is efficient with respect to historical price information.
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