<HTML><HEAD><TITLE>Re: [Dataloss] Data leaks hit share prices hard</TITLE></HEAD>
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<DIV dir=ltr><FONT face=Arial color=#000000 size=2>Indeed, but aren't we talking about means of assessing the performance of securities, not necessarily companies? Is it fair to conflate the two? After all, the link you sent indicates that "</FONT><FONT face=Arial color=#000000 size=2>the way that markets react to news surprises is perhaps the most visible flaw in the efficient market hypothesis". What are data breach disclosures, if not news surprises?</FONT></DIV>
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<DIV dir=ltr><FONT face=Arial size=2>-Dennis</FONT></DIV></DIV>
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<FONT face=Tahoma size=2><B>From:</B> Chris Walsh<BR><B>Sent:</B> Mon 10/9/2006 11:50 AM<BR><B>To:</B> Dennis Opacki<BR><B>Cc:</B> Allan Friedman; dataloss@attrition.org<BR><B>Subject:</B> Re: [Dataloss] Data leaks hit share prices hard<BR></FONT><BR></DIV>
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<P><FONT size=2>The underlying theory is generated via the so-called efficient markets<BR>hypothesis, which holds that stock prices reflect all information available<BR>to the market about firms' expected future returns.<BR><BR><A href="http://en.wikipedia.org/wiki/Efficient_market_hypothesis" target=_blank>http://en.wikipedia.org/wiki/Efficient_market_hypothesis</A><BR><BR>This is a contentious issue :^)<BR><BR><BR></FONT></P></DIV></BODY></HTML>