Passive Investing and Market Efficiency

8 Pages Posted: 21 Jun 2017  

Bradford Cornell

California Institute of Technology

Date Written: June 20, 2017

Abstract

In a stock market dominated by passive investors, an interesting question arises as to how the equilibrium level of market efficiency will be maintained. This short article argues that the critical agents in this regard must be the companies that issue the shares, not active investment managers.

Keywords: Passive Investing Market Efficiency

JEL Classification: G1, G14

Suggested Citation

Cornell, Bradford, Passive Investing and Market Efficiency (June 20, 2017). Available at SSRN: https://ssrn.com/abstract=2989692 or http://dx.doi.org/10.2139/ssrn.2989692

Bradford Cornell (Contact Author)

California Institute of Technology ( email )

Pasadena, CA 91125
United States
310-825-2922 (Phone)
310-206-5455 (Fax)

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