market efficiency


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Related to market efficiency: Efficient market hypothesis

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.

market efficiency

References in periodicals archive ?
Given that short selling is restricted in certain capital markets, we employ both of these two strategies in order to examine whether market efficiency in the semi-strong sense is implied by one or both of them.
Despite the legitimate criticism arising due to the arbitrary nature of the MA method, it is difficult to ignore the relative success of technical analysis methods reported in prior research and found in this study, too, particularly for emerging capital markets characterized by a relatively low degree of market efficiency.
Titman, 1993, "Returns to Buying Winners and Selling Losers: Implications for Stock Market Efficiency," Journal of Finance, 48, 65-91.
TOKYO & BOSTON & LONDON -- Omgeo, the leading provider of trade management solutions, and JASDEC, the Japanese central securities depository (CSD), today announced a link between their respective services that will streamline trade processing and drastically increase Japanese market efficiency.
The direct link between Omgeo and JASDEC eliminates these unnecessary and cumbersome steps, as trade instructions of matched, institutional trades will now automatically be sent to JASDEC and then passed through JASDEC to the trust bank, thus reducing the risk of failed trades and operational costs and improving market efficiency.
Mindful of the contentious nature of the theory of market efficiency, this tutorial describes the main research findings that either support or contradict the weak form of the Efficient Market Hypothesis over the years.
a) be designed to promote and deliver further market efficiency through standardisation, harmonisation and inter-operability and, where appropriate, further consolidation.
The plan identifies areas of needed improvement on the region's bulk power system and provides vital information to the market for investment purposes, both necessary ingredients to assure long-term power system reliability and market efficiency.
All of the recommended RTEP04 projects planned are needed for regional reliability or wholesale market efficiency.
Topics covered include: managing HFD; arbitrage opportunities; intra-day seasonalities; regulation; market efficiency and market making