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Stale Price
(redirected from Stale Prices)

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Stale price
An old price of the asset that does not reflect the most recent information.

Stale Price
The current price of an asset that does not reflect recently revealed or other available information. The stale price is unlikely to remain stale as the market absorbs the information and reflects it in the price. Analysts disagree on how long this takes, as different versions of the efficient markets hypothesis state that the stale price either evaporates quickly, or does not exist at all.


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Additional findings include: * Two out of five respondents wait to review stale prices after five days of no pricing changes, while only 18 percent perform an analysis on stale pricing every day.
Other investors were allowed to conduct market timing trades to take advantage of stale prices used by funds to calculate their net asset values at funds with stated policies against such trading.
Someone who can buy or sell to exploit the gap between stale prices and real prices - a "market timer" - can make a killing.
 
 
 
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