Hi, I am looking for someone to write an article on consistency of the uk stock market with efficient market theory Paper must be at least 1500 words. Please, no plagiarized work! Therefore, the recession, which had its origins in the USA in 2008, affected the markets of the UK. The market was characterized by huge levels of unemployment and there was a substantial decrease in the spending of the investors. The money available in the hand of the public was lesser than normal. The Government had to introduce a huge amount of money into the system to sustain the stability of the environment (the UK in for a prolonged recession, 15th November 2008).
The state of the UK economy can be attributed to some of the policies of the banks in the country. Like the USA, the UK banks were providing loans during the “house bubble”. When the bubble burst out the banks were in serious debt. The status of the borrowers was not analyzed properly and this caused the downfall in the economy. The age-old values of honesty and hard work have to be imbibed in the system to recover fully from the downturn and the system should introduce a system to minutely analyze the credentials of the borrowers before offering them the money (UK economic conditions, n.d.) As the investments pouring in the company reduced its activities in the business front. The companies were looking to reduce their costs and hence the economic conditions worsened. The effect of these activities had an impact on the stock market of the UK.
“The Efficient Market Theory” (EMT) is one of the most important theories that has arisen in the context of the stock market. The main propaganda of the EMT is that information about the stock market is available to all. The information about various incidents enters the stock markets and is available to all. As a result, the stocks are influenced by the information and the price changes are related to it. Therefore, the investors cannot take undue advantage of the market and has to follow a similar trajectory of the other investors.