Inefficient market


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Related to Inefficient market: Strong Form Market Efficiency

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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2005) (suggesting that if Merck's common stock was slow to respond to confusing revenue data, it would demonstrate an inefficient market and thus be grounds for denial of class certification).
The consumers currently in the inefficient market experience a switching cost of $124 (per unit of mass) because they prefer the overall shopping experience provided by the inefficient retailers.
GAAMA metaphysics posits that suboptimal GDP growth is, in part, attributable to the misdiagnosis of the former Soviet Union's governance structure as an "inefficient market" rather than a "failed firm." Markets are economic organizational structures that effect transactions for goods and services through a negotiated bid-ask process.
This trait is desirable in an inefficient market where nonlinear and contradictory variance abound.
Second, it's worth looking at the benefits of participating in an inefficient market in which the majority of investors (MNCs, for instance) do not expect to maximize their returns.
Low transparency also means a highly inefficient market which is rife with not so obvious investment opportunities.
No other words better describe the effect of predictive analytics on an inefficient market. Witness the recent growth of a few direct-to-consumer personal automobile insurers.
"Soviet Inc.," was an unprofitable firm, NOT an inefficient market. Its CEO, Joseph Stalin, was a "Robber Baron" of an industrial monopoly.
Stanton believes that real estate is an inefficient market and enjoys the challenges and rewards of discovering opportunities to add value and make money through superior market knowledge.
Intervention may be effective under inefficient market conditions regardless of the level of substitutability of bonds.
"Impact investing is challenged by an inefficient market, disproportionately high costs relative to the risk and opacity and complexity," she said.
saw a 4.4 percent decline in the price index in 2010, given the shy demand for equities in a relatively illiquid and inefficient market.