How Stock and Bond Markets Value Investment Securities

How investment securities are valued -- snapshots in time

Every securities market transaction requires a buyer and seller with differing viewpoints. Differences between investors in their assessments of the intrinsic value and risk of securities allow markets to operate.

Introduction to investment valuation and securities risk

The securities markets provide an evolving consensus of the risk-adjusted value of particular securities. By understanding how the markets value securities, individual investors can chose more durable investment strategies.

The confusing investment securities market motion picture

Securities markets are usually very quick to adjust prices to reflect new information. However, this price adjustment process may take longer and be more volatile, if the new information is ambiguous.

What is efficient market pricing in the securities markets?

Efficient market pricing or the theory that known information is reflected in current securities prices has become very widely accepted with the scientific investment community. The preponderance of evidence is that securities markets are efficient and tend to reflect available information.