Prof Dr ZA SHAH -Financial Guru 7 Controversial Investing Theories.....

1: Efficient Market Hypothesis 2: Greater Fool Theory 3: Odd Lot Theory 4: Prospect Theory (Loss-Aversion Theory) 5: Rational Expectations Theory 6: Short Interest Theory 7: Fifty Percent Principle Theory (The Bottom Line) We have covered a wide range of theories, from technical trading theories like short interest and odd lot theory to economic theories like rational expectations and prospect theory. Every theory is an attempt to impose some type of consistency or frame to the millions of buy and sell decisions that make the market swell and ebb daily. While it is useful to know these theories, it is also important to remember that no unified theory can explain the financial world. During certain time periods, one theory seems to hold sway only to be toppled the next instant. In the financial world, change is the only true constant.