[pottertheotter]

I think you're thinking of the efficient-market hypothesis. The hypothesis is that prices reflect all available information, and "available information" is the key part. The "strong form" includes private information, but research has not found support for this. And even the "semi-strong form" falls apart. For instance, the market for small cap stocks is not as efficient as the market for large cap stocks.

You need a market that has enough people paying attention and doing the work, and you also need a market that has enough liquidity.

Source: I have a PhD in capital markets.

[mlrtime]

>Source: I have a PhD in capital markets.

Sort of on-topic Q for you: What is your general take on HN discussion on finance markets/technology. They don't come up often, but when they do, I find a majority of the comments show that people have very limited understanding of traditional capital markets (non VC).

I don't have a PhD but have worked in the industry for 20+ years mostly in trading technology across fixed income and equities.