Inefficient market

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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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Specialists in business management suggest new corporate and national strategies to ensure economic growth in an environment of poverty among elders, pension insecurity, labor market inefficiency, and generational inequality.
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The result of this market inefficiency results in the process of arbitrage.
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The investigation formed part of the wider probe, in 2007, on competition in the energy sector, which had revealed that consumers and companies were penalised by market inefficiency and high prices.
This study does that with its examination of market inefficiency for firms accused of FFR by the SEC.
That data permitted researchers to address the Sectoral Shift Hypothesis by looking for a relationship between the timing of changes in some measure of labor market inefficiency (often just aggregate unemployment rates) and some economy-wide index of structural change (e.
The underlying assumption in many studies on unemployment is that there is a very close correspondence between unemployment and labor market inefficiency as witnessed in the quote by the OECD just given.
We begin by discussing the importance of market inefficiency to diversification as well as the impact of services on market forces.
A market inefficiency might not sound like a good idea for an investment, but it's the kind of opportunity some hedge fund managers live for.
The second financial market inefficiency is that investors have perfect knowledge of a firm's transactions, the evaluation of which can factor in the stock price.
The advantage to the issuer here is that stock prices won't be disrupted by speculation and stock market inefficiency.