Inefficient market

(redirected from inefficiencies)
Also found in: Dictionary, Thesaurus, Legal.
Related to inefficiencies: Inefficiencies in the Market

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.

Mentioned in ?
References in periodicals archive ?
Conclusion and Recommendations: This study employed the non-parametric DEA and Tobit Regression Model to estimate efficiencies and the determinants of the inefficiencies of the sampled Statice cut-flower farmers in the study area during 2012.
I'm sure there are many Journal readers who could regale us with tales of corporate inefficiencies, even in the most British of organisations.
The offering is tailor-made, aimed at tackling market inefficiencies, saving funding costs and reducing overhead costs.
The bottom-up inefficiencies arise because, in addition to too few trades taking place, the wrong trades are also likely to take place.
A load profile can illustrate how energy is used throughout the facility, providing a valuable baseline that can help identify inefficiencies and evaluate improvement efforts.
Therefore, the traditional measures of efficiency and economies of scale and scope may not accurately reflect the cost structure of the industry and alternative measures of inefficiencies should be examined.
As a result of the Pareto analysis, we decided to attack patient timeliness at the same time as physician and staff inefficiencies.
While much can be said about the ethical dilemmas of cost-benefit analysis, it is clear that the whole subject emerged in part out of the inefficiency of a regulatory approach that emphasized control rather than prevention and because of the inefficiencies of an economy that seeks to meet all social needs--including health, transit, and recreation --through marketable commodities.
Blackburn, Duke University's Distinguished Service Professor Emeritus of Economics, says he believes inefficiencies may still account for 50 percent of the energy used in the United States and most Western European countries, somewhat less than 50 percent in Japan, and considerably more than 50 percent in the Soviet Union.
Abstract Stochastic frontier analysis is used to estimate operating cost inefficiencies of public and private non-profit universities in the U.