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Labor theory of value |
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Labor theory of valueThe theory that the value of any produced good or service is equal to the amount of labor used, directly and indirectly, to produce it. Sometimes said to underlie the Ricardian Model of international trade.Similar MatchesEfficient market theoryEfficient market theoryThe theory that claims that the current price of a share reflects everything that is known about the company and its future earnings potential, and that is it impossible to beat the market consistently.Efficient market theory suggests that the army of analysts and fund managers in the City whose job is to actively manage superior-performing portfolios are engaged in a futile exercise because everything they find out is rapidly transmitted around the market, and share prices instantly reflect the common knowledge. In other words, no one can get one up on anyone else. And the logical extension of this is that passive funds - tracker and index funds - are the best place to park your money, because their management costs are much lower and they are mathematically structured to match the performance of their chosen index.Plenty of people disagree with efficient market theory, and their ranks include people like Warren Buffett who has consistently produced returns of over 20% on his portfolio over a 30 year period. Dependency TheoryDependency TheoryThe theory the less developed countries are poor because they allow themselves to be exploited by the developed countries through international trade and investment. Dow TheoryDow TheoryUsed in the context of general equities. Technical theory that a major trend in the stock market must be confirmed by simultaneous movement of the Dow Jones Industrial Average and the Dow Jones Transportation Average to new highs or lows. Expectations theory of forward exchange ratesExpectations theory of forward exchange ratesA theory of foreign exchange rates that states that the expected future spot foreign exchange rate t periods from now equals the current t-period forward exchange rate. Cushion theoryCushion theoryThe theory that a stock with many short positions taken in it will rise, because these positions must be covered by the stock. Further SuggestionsLocal expectations theoryTheory of second best Presidential election cycle theory Complexity Theory Efficient markets theory(EMT) Conduit theory New Trade Theory Game Theory Dow dividend theory Modern portfolio theory Bubble theory Product cycle theory Agency theory Portfolio theory Preferred habitat theory Normal backwardation theory Dow theory Odd lot theory Purchasing power parity theory Game theory Elliott Wave Theory Short interest theory Greater fool theory Bicycle Theory capital market theory |
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