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.

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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Labor market inefficiency, including high redundancy costs and low flexibility of wage determination, makes it difficult for Indonesia to follow the successful path of other Asian economies in developing labor intensive manufacturing, the report noted.
The greatest market inefficiency in professional sports is a franchise quarterback on a rookie contract.
Hence, market inefficiency could seriously limit the ability of the stock market to allocate funds to the most productive sectors of the economy, potentially hampering long-term growth.
'Market inefficiency and unhealthy competition are threats to economic growth and sustainable development; in this regard, market distortion and unfair practices will be addressed to promote market efficiency and healthy competition in the economy,' it said.
Wealthier individuals, from high net worth families to institutional investors to well-funded technology companies, have utilized this market inefficiency to their advantage.
Second best / A generic explanation for people's initial negative reaction to these old practices is grounded in the economic "theory of the second best." The theory holds that efforts to eliminate a market inefficiency can sometimes make the market less efficient.
-- Leave it to the Cubs to turn collusion -- or whatever it was that drove this free-agent market into the ground -- into a market inefficiency to exploit for a competitive advantage.
Specialists in business management suggest new corporate and national strategies to ensure economic growth in an environment of poverty among elders, pension insecurity, labor market inefficiency, and generational inequality.
While it has been a rocky start for markets globally, the subsequent volatility has brought with it opportunity in the form of market inefficiency. When the market is inefficient, it means investors are generally allowing fears-rather than fundamentals-to overwhelm their decisions, and prices of securities may not reflect their underlying value," he explained.
While it has been a rocky start for markets globally, the subsequent volatility has brought with it opportunity in the form of market inefficiency. When the market is inefficient, it means investors are generally allowing fears--rather than fundamentals--to overwhelm their decisions, and prices of securities may not reflect their underlying value," he explained.
But the bid-ask spread, a measure of market inefficiency, rose nearly 10 per cent.
Allocative market inefficiency comprises deviations from perfectly competitive prices and outputs.