Pricing efficiency

Pricing efficiency

Also called external efficiency; a market characteristic that prices at all times fully reflect all available information that is relevant to the valuation of securities.

Market Efficiency

The extent to which the price of an asset reflects all information available. Economists disagree on how efficient markets are. Followers of the efficient markets theory hold that the market efficiently deals with all information on a given security and reflects it in the price immediately, and that technical analysis, fundamental analysis, and/or any speculative investing based on those methods are useless. On the other hand, the primary observation of behavioral economics holds that investors (and people in general) make decisions on imprecise impressions and beliefs, rather than rational analysis, rendering markets somewhat inefficient to the extent that they are affected by people.
References in periodicals archive ?
Syncron is committed to delivering pricing efficiency as well as higher margins.
Hence, we make an assumption that Black and Scholes (1972) option pricing model is valid and therefore, in this study the pricing efficiency of index options market in India is examined by using Black and Scholes model for valuing the index options.
These products include executable FX indices and both OTC and exchange-traded FX index- linked financial products that offer new standards for transparent price discovery and pricing efficiency.
Real-time bidding, an evolution of digital advertising that provides impression-level buying and pricing efficiency, auctions off advertising impressions on a one-by-one basis in real-time as users interact with a site.
The firm said that it has selected Earnix Optimizer as its standard global pricing platform to enable pricing efficiency, effectiveness and consistency throughout all member companies.
The new management team in Russia already started to implement a set of measures to regain momentum in our business development," Izosimov said adding the measures were focused on network expansion, distribution, and pricing efficiency.
Short selling can serve useful market purposes, including providing market liquidity and pricing efficiency.
According to ICAP, both companies see catastrophe swaps as offering customers increased pricing efficiency, lower frictional costs and transparency.
1985) Pricing Efficiency in Centralised and Non-centralised Markets.
However, the results of the paper may be attributed to the essential steps that have already been taken by the authorities to improve the operating and pricing efficiency of UAE stock market during the last two years.
This paper studies the pricing efficiency of traded stock baskets and examines the impact of arbitrage costs in the pricing of these relatively new, but high volume, financial instruments.
Given their prominence and functions, the pricing efficiency of these markets is of great importance to academics, practitioners, and regulators.