Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Types of Efficiency
Efficient market theory can be described in three ways:
1) Allocative Efficiency:A market is allocatively proficient when it directs savings towards the most proficient productive enterprise or project. In this condition, the most proficient enterprises will find it simpler to increase funds and economic prosperity for the entire economy should outcome.
Allocative effectiveness will be at its optimal level when there is no alternative allotment of funds channelled from savings which would outcome in higher economic prosperity. To be allocatively proficient, the market must have fewer financial intermediaries such that funds are allocated directly from savers to users, hence financial disintermediation must be encouraged.2) Operational Efficiency:This concept associates to the cost, to the borrower and lender, of doing business in a specific market. The greater the transaction cost, the greater the cost of employing financial market and hence the lower the operational efficiency. Transaction cost is kept as low as possible where there is open competition between broker and other market participants. For a market to be operationally proficient, hence, we require to have adequate market markers who are capable to play continuously.3) Information Efficiency:This reflects the extent to which the information concerning the future prospect of a security is reflected in its present price. When all known (public information) is reflected in the security price, then investing in securities becomes a fair game. All investors have similar chances mainly since all the information which can be identified is already reflected in share prices. Information effectiveness is significant in financial management since it means that the effect of management decision will rapidly and accurately be reflected in security prices. Efficient market theory associates to information processing efficiency. It argues that stock markets are proficient such that information is reflected in share prices precisely and quickly.
3 approach current asset financing
Pension Fund Management: A Global Perspective Pension funds are known worldwide more for their social security element. They have assumed more importance from the day the priva
nestle is an orgnization wether bureacratic approach approperiate for the organizational performance or not?
We need to have done some exploration work on all of the major projects for inclusion in our prospectus, but of our $4m we need at least $1m in the bank to pay for all the listing
Treasury Bills in International Markets A brief discussion on treasury bills in international markets is given below: Primary Market T-bills are important money market
The Nu-Nu Brothers Inc. (NNBI) has the following capital structure, which it considers to be optional: Debt 25% Preferred Stock 15% Common Equity 60% NNBI''''s expected net income
Public Bourses The origin of this type of bourses can be found in the legislative work of Napoleon. These type of bourses are regulated by the government, brokers are appointed
Can Engineering Tech effectively protect its interests and assure payment?
What is an LBO? What are the risks for the equity investors and what are the potential rewards? A leveraged buyout is a buy of a publicly owned corporation by a small group of
What are the Components of Return Return is fundamentally made up of two components: Periodic cash receipts or income on the investment in the form of interest,
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd