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Posted by Akash on October 6, 2007, 3:16 am
There is a lot of talk about the "efficient capital market". Market
efficiency describes the operating characteristics of the capital
market. These are of two types:
=B7 Operationally or internally efficient. In which an investor can do
transactions as cheaply as possible. This would include brokerage,
commissions, and other charges.
=B7 Pricing or externally efficient. In which an investor can expect
that stock prices at all times reflect all available information that
is relevant to the evaluation of the stocks.
A further exposition for a better understanding maybe read at (You may
click on the link below or type the complete URL address into your
browser):
http://www.narachinvestment.com/market_efficiency.htm
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