INTRODUCTION Financial markets characterise by many entities that interact and affect each other in the trading process. In this context, there are two different approaches to stocks pricing: efficient markets (EM) and noise trading (NT). Each approach implements different scenarios that lead to different results. The aim of this paper is to look at these two different approaches and to compare and contrast between criteria that shape each approach. The first and second sections discuss …showed first 75 words of 1787 total…

…showed last 75 words of 1787 total…Prices Move Too Much to be Justified by Subsequent Changes in Dividends?", American Economic Review, 71, 421-436 13.<Tab/>Shleifer, A (2000) Inefficient Markets: An Introduction to Behavioral Finance, 6th Edition, Oxford: Oxford University Press 14.<Tab/>Shleifer, A and Summers, L (1990) The Noise Trader Approach to Finance, Journal of Economic Perspectives, Spring, 19-34 15.<Tab/>Thaler, R (1999), The End of Behavioral Finance, Financial Analysts Journal, November-December, 12-17