Inefficient market


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Related to Inefficient market: Strong Form Market Efficiency

Inefficient Market

A market where prices do not always reflect available information as accurately as possible. Inefficient markets may result from a lag in information transferring to one place to another, deliberate withholding of information by an insider, or other reasons. Inefficient markets give rise to arbitrage opportunities. Most analysts believe that no market is perfectly efficient and that some inefficiency is inevitable. See also: Efficient Markets Hypothesis.

Inefficient market.

In an inefficient market, investors may not have enough information about the securities in that market to make informed decisions about what to buy or the price to pay.

Markets in emerging nations may be inefficient, since securities laws may not require issuing companies to disclose relevant information. In addition, few analysts follow the securities being traded there.

Similarly, there can be inefficient markets for stocks in new companies, particularly for new companies in new industries that aren't widely analyzed.

An inefficient market is the opposite of an efficient one, where enormous amounts of information are available for investors who choose to use it.

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Notice that the 50% of consumers in the inefficient market will not switch because the utility gain would be only $96 (per unit of mass), while the cost is assumed to be $124 (per unit of mass).
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The disaggregation of the old Western Power resulted in an oversupply of power production and an inefficient market structure, which ended up costing the State and ultimately households, hundreds of millions of dollars every year, he said.
Our opportunity sets are non-agency mortgages and corporate structured credit, both inefficient markets, where our proprietary analytics provide a unique advantage in finding undervalued optionality.
Roger Farmer, University of California, Los Angeles and NBER, and Carine Nourry and Alain Venditti, University of the Mediterranean, "The Inefficient Markets Hypothesis: Why Financial Markets Do Not Work Well in the Real World" (NBER Working Paper No.
Named one of the world's top 40 international development innovators, DAI works on the frontlines of international development, tackling fundamental social and economic development problems caused by inefficient markets, ineffective governance, and instability.
However, Lebanon has inefficient markets, and banks do not play a real role in lending to productive sectors at low interest rates and with facilitating terms.
A cottage industry, where inefficient markets made the opportunities afforded to investors that much easier to access, has matured into a professional, highly competitive global business that can now command the top talent from within financial services.
And any global GHG abatement strategy must confront the problems of weak legal systems, corruption, and inefficient markets that Bell highlights.
eBay and other innovators will continue to apply new technologies to inefficient markets.