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Capital Market Efficiency - The capital market efficiency is an analysis of the performance and efficiency of capital markets. This provides a gauge to judge how fair current market prices are for a given asset involving the current market situations. When there is breaking news, good or bad, about a specific company, an analysis occurs on the stock's price to see how to value it, given the news. Capital market efficiency is a measure as to the accuracy of the stock's current prices. Generally, when the news is bad the price of the stock will fall, and when the news is good the price of the stock will increase. |