In recent years, blockchain has gained widespread attention as an emerging technology for decentralization, transparency, and immutability in advancing online activities over public networks. As an essential market process, auctions have been well studied and applied in many business fields due to their efficiency and contributions to fair trade. Complementary features between blockchain and auction models trigger a great potential for research and innovation. On the one hand, the decentralized
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Binary options A binary option is a financial exotic option in which the payoff is either some fixed monetary amount or nothing at all.[1][2] The two main types of binary options are the cash-or-nothing binary option and the asset-or-nothing binary option. The former pays some fixed amount of cash if the option expires in-the-money while the latter pays the value of the underlying security. They are also called all-or-nothing options, digital options (more common in forex/interest rate marke
What Is the Efficient Market Hypothesis (EMH)? The efficient market hypothesis (EMH), alternatively known as the efficient market theory, is a hypothesis that states that share prices reflect all available information and consistent alpha generation is impossible According to the EMH, stocks always trade at their fair value on exchanges, making it impossible for investors to purchase undervalued stocks or sell stocks for inflated prices. 1 Therefore, it should be impossible to outperform the overall market through expert stock selection or market timing. The only way an investor can obtain higher returns is by purchasing riskier investments.
The term market refers to the place where a group of suppliers and demanders come together to engage in transactions involving a particular good or service. From this confrontation arises a price, referred to as the market price. In theory, there are several types of markets: When a market is characterized by a significant number of economic agents (sellers and buyers), such that no agent can individually influence the behavior of others and the market price with their decisions, it is a market of pure and perfect competition. When there is only one seller in a market on one hand and a large number of buyers on the other, it is referred to as a monopoly market. Conversely, if there is only one buyer and several sellers, the market is a monopsony. When a market is characterized by a small group of sellers and a large number of buyers, it is referred to as an oligopoly (however, if there are only two sellers in the market, we will refer to it as a duopoly). Oligopsony is the situation in which the number of buyers is negligible while that of sellers is significant. When competing companies in a market sell identical but slightly differentiated goods from one another, it is referred to as a monopolistic competition market. The market price is determined by the confrontation of supply and demand. However, the market is in equilibrium when the market supply equals the demand expressed in the market.
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#BNBChainMeme This paper reviews the development of capital market theories based on the assumption of capital market efficiency, which includes the efficient market hypothesis (EMH), modern portfolio theory (MPT), the capital asset pricing model (CAPM), the implications of MPT in asset allocation decisions, criticisms regarding the market portfolio and the development of the arbitrage pricing theory (APT). An alternative school of thought proposes that investors are irrational and that their trading behaviors are driven by psychological biases such as greed and fear. Prospect theory and the role of behavioral finance that describe investment decisions in imperfect capital markets are presented to contrast the Utopian assumption of perfect market efficiency. The paper concludes with the argument of Hirshleifer (2001) that heuristics are shared by investors and asset prices may not reflect their long-term intrinsic values as indicated by efficient capital market theories.
This paper reviews the development of capital market theories based on the assumption of capital market efficiency, which includes the efficient market hypothesis (EMH), modern portfolio theory (MPT), the capital asset pricing model (CAPM), the implications of MPT in asset allocation decisions, criticisms regarding the market portfolio and the development of the arbitrage pricing theory (APT). An alternative school of thought proposes that investors are irrational and that their trading behaviors are driven by psychological biases such as greed and fear. Prospect theory and the role of behavioral finance that describe investment decisions in imperfect capital markets are presented to contrast the Utopian assumption of perfect market efficiency. The paper concludes with the argument of Hirshleifer (2001) that heuristics are shared by investors and asset prices may not reflect their long-term intrinsic values as indicated by efficient capital market theories.