Abstract The [3N] Mechanism reconciles the conflict between informational states. This paper takes the idea of the [3N] mechanism and reexplains it as the combination of the Market Capitalization [MCAP] weighting methodology which can be understood as the Rich-Get-Richer, Non-Normal approach [NN] and Value investing, which can be understood as Poor-Get-Richer, Normal approach [N]. The…

Abstract Most Index Funds and ETFs are driven by an underlying Index. Most Indexing companies uses the Market Capitalization [MCAP] Method which has history going back to 1871. The Index funds and ETF industry have seen fast growth because Active Investing underperforms the Passive MCAP based Indexes. The feature below explains that though the MCAP…