How Secure is Secure University of the People Written Assignment Unit 3 Bus 2203 Principles of Finance Everyone needs the feeling of being secure in work, love, money, and life. Saul McLeod (2017) discusses Maslow's hierarchy of need as safety, including security, as being the second level of needs. With a market with some many ups and downs as the stock market how can one feel secure trusting their earnings to a company. According to the company's website Dimensional investing is a company that applies financial science to their investments and solutions. They look at investment as a science that examines proof and evidence to make decisions. Founders David Booth and Rex Sinquefield developed the company on the thoughts that there were better practices to investing in the market than the standard processes at the time. Much of their business practices were developed on the Efficient Market Hypothesis (EMH) developed by Nobel Memorial Prize winner Eugene Fama. Fama defined an "efficient" market as one that the most market information is freely available. (Fama, 1970) In his 1965 paper, Random Walks in Stock Market Prices, Fama identified techniques for predicting stock market prices such as technical theories and an intrinsic value analysis. (Fama, 1965) Most analysist relied on charts and base decisions on the …show more content…
He initially discusses how efficient markets create a foundation of responsible financial decision making. Nath points out that if proper analysis were conducted then the housing bubble and collapse could have been avoided. Nath goes on to examine the fact that all information should be available to all, however, there are still ones, such as Warren Buffet, that seems to continue to prosper more than others in the market. Nath's theory's give substance to the possibility of insiders having more information than the