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market inefficiency


Definition
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.

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How Bargains Develop for InvestorsInstitutional constraints and market inefficiencies are the primary reasons that bargains develop. Investors prefer businesses and securities that are simple over those that are complex. They fancy gr ... Read more


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