So everybody has some information. The function of the markets is to aggregate that information, evaluate it, and get it incorporated into prices.
More Quotes from Merton Miller:
For me, as an economist, it was frustrating to have no sense of a theory of corporate finance to tie all this material together.Merton Miller
Another is, if you take money out of your left pocket and put it in your right pocket, you're no richer.
Merton Miller
Most people might just as well buy a share of the whole market, which pools all the information, than delude themselves into thinking they know something the market doesn't.
Merton Miller
I had some of the students in my finance class actually do some empirical work on capital structures, to see if we could find any obvious patterns in the data, but we couldn't see any.
Merton Miller
Franco and I were both working on the problem, but from somewhat different perspectives - he from macroeconomics and me from corporate finance.
Merton Miller
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