MARKET INEFFICIENCY

Market Inefficiency

Market Inefficiency

A condition in which current prices manage not reflect all the publicly available information about a security, for example when some individuals get certain data before others, or when some persons manage not properly analyze the available information.

Market inefficiency is a status that happens when current prices don't reflect the available data regarding securities. The anomaly renowned as market inefficiency can happen if a one-by-one does not properly analyze the existing public data, or if a one-by-one somehow gets certain data before others do. For example, if an investor mistakenly prices the value of a distressed company's ...