market efficiency

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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 ?
Commercials are available through Snap's self-serve platform offering many benefits including improved targeting, measurement and price efficiency. In addition, Commercials offer advertisers alignment with premium, brand-safe content in an engaging and compelling format.
Air Partner is highly experienced at dealing with the unique demands of automotive industry events, where time and price efficiency are key: for instance, the ability to fly out members of the press to events in a time-efficient manner ensures a greater turnout at important events.
"The result is expected to be greater price efficiency, increased liquidity, reduced market volatility and enhanced security for both investors and intermediaries, and thus creating a more attractive investment climate for domestic and international investors," said Khalid Abdullah Al Hussan, Chief Executive Officer of Tadawul.
Dr Chelat said the benefit of price efficiency that the retailer gained through large-scale procurement of products is transferred onto the end-consumer, he said.
However, the arbitrage trading will lead to improved price efficiency and probably less volatility.
Both price efficiency and market efficiency were used to investigate the relationships between price and quality.
We explore the relation between limit order price clustering and price efficiency. We find that executed sell limit orders cluster more frequently on round increments than buy limit orders and that this asymmetry in clustering is consistent with the well-documented asymmetry in price response to marketable orders.
Generally, we can say that for all of the required marketing paths, the rate of price efficiency is wonderfully lower than technical efficiency and the total efficiency of marketing has a low level [3].
This type of auction efficiency will be referred to in this paper as the price efficiency.
This study can thus provide policy implications of price efficiency for other agricultural commodities, such as corn and hogs.
Researchers have said that there are also signs of maturity based on increased liquidity and price efficiency, which means all available information is incorporated into prices so they are traded in a relatively transparent manner.
Dilruba, (2005) estimated relative economic and price efficiency of different banks in Bangladesh.