One reason for market inefficiency is shareholder opportunism.
Financial and business terms. 2012.
market efficiency — UK US noun [U] STOCK MARKET, FINANCE ► a situation in which a financial market operates well, for example where customers have enough information about products, prices are related to supply and demand, etc.: »The increased market efficiency is… … Financial and business terms
Inefficiency — The term inefficiency has several meanings depending on the context in which its used:*Allocative inefficiency Allocative efficiency theory says that the distribution of resources between alternatives does not fit with consumer taste (perceptions … Wikipedia
inefficiency — inefficient in‧ef‧fi‧cient [ˌɪnˈfɪʆnt◂] adjective producing goods or working in a way that uses more time, money etc than necessary: • the assumption that the public sector is wasteful, inefficient and unproductive inefficiently adverb… … Financial and business terms
Market anomaly — A market anomaly (or market inefficiency) is a price and/or return distortion on a financial market that seems to contradict the efficient market hypothesis.[1][2] The market anomaly usually relates to: Structural factors, such as unfair… … Wikipedia
Market failure — is a concept within economic theory wherein the allocation of goods and services by a free market is not efficient. That is, there exists another conceivable outcome where a market participant may be made better off without making someone else… … Wikipedia
inefficiency — noun ADJECTIVE ▪ gross ▪ inherent ▪ bureaucratic, government ▪ economic, market VERB + INEFFICIENCY … Collocations dictionary
Efficient-market hypothesis — Financial markets Public market Exchange Securities Bond market Fixed income Corporate bond Government bond Municipal bond … Wikipedia
Stock market index — A stock market index is a method of measuring a section of the stock market. Many indices are compiled by news or financial services firms and are used to benchmark the performance of portfolios such as mutual funds. Types of indices Stock market … Wikipedia
x-inefficiency — ˌx inefˈficiency noun [uncountable] when a business does not achieve the best results in the most economic way in relation to the number of employees, machines etc it has: • A firm’s X inefficiency is measured by how much it differs from the… … Financial and business terms
X-inefficiency — is the difference between efficient behavior of firms assumed or implied by economic theory and their observed behavior in practice.Economic theory assumes that the management of firms act to maximize owners wealth by minimizing risk and… … Wikipedia
