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Non-public companies don't advertise investment opportunities uniformly to the entire market of investors the way a public company does.
by robertlagrant 2y ago
Non-public companies don't advertise investment opportunities uniformly to the entire market of investors the way a public company does.
- littlestymaar 2y agoEMH is about markets factoring in all available information, not just “uniformly advertised investment opportunities”.
- robertlagrant 2y agoBut not all information is available to the whole market. Otherwise fully private startups would also fall under it, as, well, the employees know the information, so it's technically "available". That definition of EMH seems to be what's causing this idea that innovation in new companies is impossible, rather than the general idea that asset prices reflect available information. Some information is not available, and that won't be reflected in prices. That's all.