Market Inefficiency

Business, Legal & Accounting Glossary

Definition: Market Inefficiency


Market Inefficiency

Quick Summary of Market Inefficiency


A condition in which current prices do not reflect all the publicly available information about a security, such as when some individuals get certain information before others, or when some individuals do not properly analyze the available information.




Examples of Market Inefficiency in a sentence


You should try and follow the market inefficiency and find a weak spot that you may take some advantage of.

The market inefficiency began to show itself when it became apparent that the source of such predictions was grossly inadequate.

The market inefficiency demonstrated that all of the available information out there is not being used optimally by the market participants.


Related Phrases


index arbitrage
tax wedge
selective disclosure
inside information
arbitrage house


Cite Term


To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/market-inefficiency/
Modern Language Association (MLA):
Market Inefficiency. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
April 19, 2024 https://payrollheaven.com/define/market-inefficiency/.
Chicago Manual of Style (CMS):
Market Inefficiency. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/market-inefficiency/ (accessed: April 19, 2024).
American Psychological Association (APA):
Market Inefficiency. PayrollHeaven.com. Retrieved April 19, 2024
, from PayrollHeaven.com website: https://payrollheaven.com/define/market-inefficiency/

Definition Sources


Definitions for Market Inefficiency are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 6th November, 2021 | 0 Views.