Inefficient market

(redirected from inefficient)
Also found in: Dictionary, Thesaurus, Wikipedia.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
Mentioned in ?
References in periodicals archive ?
New Delhi [India], Dec 14 ( ANI ): While addressing the booth workers of Kerala, Prime Minister Narendra Modi attacked Congress and Communist party and said that both parties provide Kerala with a model of efficient corruption and inefficient governance.
Energy consumption in buildings in developed economies is in many cases inefficient and wasteful due to continued use of outdated technologies and standards.
Use of inefficient equipment by consumers also contributes to pushing up the power demand.
There is nothing wrong with Medicare's basic cost containment methods, certainly nothing so wrong as to warrant the herding of millions of enrollees into inefficient health insurance companies, many of which rely on rationing to control spending.
The minister said that owing to the inefficient foreign policy of the incompetent Niazi regime the leaders around the world were not heeding us.
It has announced the formation of committees in all four provinces and Islamabad to identify 'inefficient and corrupt' judges by reviewing their judgments and making investigations, and then preparing references against them.
The team proceeded to Bathinda, Punjab on Thursday and met the victim, victim's mother, District Collector, Bathinda, SSP, Bathinda, and District Legal Service Authority, Bathinda.According to the observations of the team, "The situation was handled in an inefficient manner by Police authorities and there had been delay in registering FIR and carrying investigation."
LAHORE -- PML-N spokesperson Maryam Aurangzeb has said increasing the price of petroleum products by Rs 4.26 per liter is advance Eidi of incompetent and inefficient Prime Minister (PM).
"If Chinese contractors told you that Filipino workers are inefficient and are slowpokes, why didn't you verify it?
This study determined whether there is a statistically significant difference between efficient and inefficient OECD countries in terms of health indicators using FDEA.
The Commission on Audit (COA) has called out regional offices of the Department of Agriculture (DA) and the Department of Public Works and Highways (DPWH) for slow implementation of disaster-related projects and inefficient use of funds.