Inefficient market

(redirected from inefficient)
Also found in: Dictionary, Thesaurus, Legal, Wikipedia.
Related to inefficient: unsystematic, Inefficient market, Inefficient portfolio, Economically Inefficient

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 ?
These nations have committed to strategies to phase-out inefficient light bulbs by 2016 and activities have begun in 27 countries, including Chile.
Patient admission: Admitting one patient takes about 51 minutes, of which an average of 33 minutes (65 percent) is wasted due to inefficient communications.
The Prince said it was "unbelievable" that Italian farmers were sometimes dismissed as inefficient for using old fashioned techniques, even though they produced high quality products.
Summary: DUBAI - The UAE is in the process of restricting the entry of inefficient air-conditioning units in the country and has begun rolling out energy efficiency labelling system for window type and split-system.
One of the greatest impediments of the Macedonian economy is the inefficient administration, poor access to capital, political instability, corruption, bad infrastructure, inefficient education system, and unqualified workforce.
The opposition accuses the government of weak economic policy, lack of financial stability and inefficient measures to combat the crisis.
Macedonia will not carry out inefficient reforms in this segment until the politics is not detached from the judiciary.
htm, calls on the Scottish Parliament to "introduce a financial incentive similar to that which applies in England to encourage the replacement of older, inefficient central heating boilers".
I APPRECIATED the reasoned logic Mr Williams used (Voice of the North, January 11) in his support of the most inefficient form of power generation for an industrialised country.
The pounds 150million drive, launched six years ago for the under 25s, is inefficient says the National Audit Office.
And Mr Reevell branded it as being inefficient, behind schedule and insecure.
Let's get this straight: This is the very same bureaucratic, inefficient, often misguided federal government that can't do anything better than the private sector can?