Economy in which prices immediately and fully reflect all relevant information.
A market in which, at a minimum, current price changes are independent of past price changes, or, more strongly, price reflects all (publicly) available information. Some believe foreign exchange markets to be efficient, which in turn implies that future exchange rates cannot profitably be predicted.
Economy in which prices correctly reflect all relevant information.
When the information that investors need to make investment decisions is widely available, thoroughly analyzed, and regularly used, the result is an efficient market. Conversely, an inefficient market is one in which there is limited information available for making rational investment decisions. Efficient mark
A market in which information is instantaneously reflected in the price.
Investment theory which holds that pricing of shares in the stock markets immediately reflect all available information and investor expectations pertaining to a particular company. Believers in the efficient market hold that it is impossible to beat the stock market over long periods of time.
The theory-disputed by some experts-that stock prices reflect all market information that is known by all investors. Also states that investors cannot beat the market because it is impossible to determine future stock prices.
A market in which prices reflect all relevant information.
A market in which the current price reflects all available information from past prices and volumes.
A market theory that dissuades investors from using fundamental research to find undervalued or mis-priced securities. The central idea is that market prices already reflect the full knowledge of investors, which makes it impossible to outperform the market.
A market in which new information is immediately available to all investors and potential investors. A market in which all information is instantaneously assimilated and therefore has no distortions.
In economic theory, an efficient market is one in which market prices adjust rapidly to reflect new information. The degree to which the market is efficient depends on the quality of information reflected in market prices. In an efficient market, profitable arbitrage opportunities do not exist and traders cannot expect to consistently outperform the market unless they have lower-cost access to information that is reflected in market prices or unless they have access to information before it is reflected in market prices. See Random Walk.
market in which the actual price embodies all currently available relevant information. Resources are sent to their highest-valued use.
A market in which security prices reflect information instantaneously.