Organisational effects split the investment process three ways

Last month, portfolio strategies examined the differences between efficient market thesis compared to behavioural finance. Many academics support market thesis, believing the market's performance is random because everything known is immediately reflected in share prices by players acting rationally, while those in favour of behavioural finance argue that share prices are predictable because players often act irrationally. This month, the rationale behind investing will be examined starting with what organisational effects create a divergence of interests between investors and their agent...