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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
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While oil-rich Gulf states may be able to erect skyscrapers in the desert, such development is economically inefficient and unsustainable in the long run.
Pottle pointed out that toll booths are an economically inefficient way of generating government revenue because administrative and collection costs consume up to 33.5 percent of the revenues generated, while administrative costs only hit about 1 percent of fuel tax revenues.
However, IOCs' remuneration is predetermined to the production profile for the whole lifetime of the service contract, disregarding the dynamic profit maximization policy, which will still cause profit losses and make the contract framework economically inefficient if one of the variables considerably decline.
Mercedes Benz previously issued a statement in May 2015, announcing that Mercedes-Benz's assembly of passenger cars in the local market would cease as it has become economically inefficient on the long run.
Bankruptcy Court in Delaware to implement a prepackaged plan of reorganization that, among other things, provides the company access to new financing to support the business, establishes an efficient and orderly process for closing certain economically inefficient store locations, and provides for all trade creditors to continue being paid in full for goods and services provided.
He predicted that Emirates' plans to induct up to 200 777Xs which will primarily replace today's 777s, but by the time it takes its 200th 777X delivery, the A380 fleet will be operationally expensive and economically inefficient - so it stands to reason that they'll procure more 777Xs and 787s going forward.
This framework serves as a passing document for all Governments (Government's economic agenda), classified as per the following key tracks: Track one: Fiscal Reform: Re-structuring the tax system, including removing almost all economically inefficient exemptions of GST to finally achieving fiscal and monetary stability.
It is not only economically inefficient but also self-destructive because the shortage of highly paid tradespeople--plumbers, electricians, welders, health care providers, HVAC technicians and production technicians who don't need four-year degrees--is acute.
"Malls that do not have cinema-equipped buildings will move and provide space even if they exploit some economically inefficient locations." Alawi, who previously ran the Red Sea Mall, said: "The Red Sea Mall, for example, would provide at least 12 cinema showrooms, with at least 300 seats each, currently being built." He explained that the flow of capital abroad throughout the year was not justified, and greatly hurt the Saudi economy.
The legal critique more fully addresses the problem than does the economic protest, for although much administrative power is economically inefficient, all of it is unconstitutional.
Of all the factors influencing the market, human nature, "as economically inefficient and unsophisticated it may be, seems the least likely to change," Grantham concludes.

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