Definition of «inefficient market»

An inefficient market refers to a situation where prices of goods, services, or assets do not accurately reflect their true value. In such a market, it is possible for buyers or sellers to obtain unfair advantages or make trading decisions that result in suboptimal outcomes. The inefficiency can arise due to lack of information, irrational behavior, or barriers preventing equal access to market participants.

Sentences with «inefficient market»

  • They're still accessing a great growth opportunity, and more inefficient markets offer better scope for active management (to outperform passive ETFs). (wexboy.wordpress.com)
  • And emerging markets are often considered the poster child for inefficient markets. (cbsnews.com)
  • There is also plenty of evidence of how inefficient the markets are. (thedigeratilife.com)
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