bject to rapid decline. The availability of public information did finally force AOL into disclosing the ruse and changing its accounting practices, and coincidentally, lower the stock value to its true worth.The argument that Efficient Market Theory was working in AOL's case is that the investors were protected from precipitous loss because the system adjusted the stock price to reflect the actual value of AOL stock. The previously high price did indicate the value of the stock based on the accounting practices then in effect, however misleading they may have been. At the moment that the company decided to change the accounting practices, the value of the stock then was corrected to the actual lower value. This could, reasonably, be viewed as a repudiation of EMT....
