Week 3: Stock market efficiency

Stock market efficiency can be easily judged by the success of the company. We can see three level of market efficiency from weak form efficiency, semi-strong efficiency, and strong form efficiency. The effect of stock market efficiency the prices become not predictable but random and it made the investment pattern can be discerned.

Nowadays, mostly peoples in the world who concerned in the development of technology definitely know the Apple Company. The investors have to think the unthinkable, because of the death of the Apples company CEO, Steve Jobs. We can see back to 1997, when the returned of Steve Jobs to Apple company and made the company’s stock price risen more than 9,000%, and doubled in the past two years. From this thing, we can Apple company’s is categorized as a strong for efficiency. The returned of Steve jobs in 1997 really affects the Apple company stock price during that year.

Apple can be categorized as a most successful company, because within 8 years, Apple stock is increases from $6.56 to $403. We can see that Steve Jobs really bring big impacts in this company. Steve Jobs have brilliant ideas and can be seen from the company’s range of products from iMac, Macbook, iPad, iPod, and iPhone.

In 2009, Apple Company has explosive growth in sales and profit from iPhones, iPods, iPads and Macs. Apple’s sales have tripled from $9.08 billion in its second fiscal quarter of 2009 to a record $28.6 billion in its latest quarter, ended in June. Steve Jobs always succeed in creating their new products until he died in 2011. The shares of Apple company drops 6% in pre-market trades. It can be seen how Steve Jobs really affects Apple Company performance.

The announcement of the death of Apple’s Company CEO made the investor sells their shares. However, the new CEO Tim Cook has successfully launched the new products of Apple, which are iPad mini, new iPod touch, and iPhone5. From these products, iPhone 5 is the awaited product in 2012. Apple Company also expands their market for iPhone 5 in South Korea and it made iPhone 5 were available in more than 47 countries. The shares increased about 1.5% to $594 in pre-market trades. We can concludes that the launching of iPhones 5 really bring good impact to the company, which is made the shares increased.