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Strong form efficiency |
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Strong form efficiencyA form of pricing efficiency, that posits that the price of a security reflects all information, whether or not it is publicly available. Related: Weak-form efficiency, semi-strong form efficiency.Strong form efficiency Similar MatchesTechnical inefficiencyTechnical inefficiencySee X-efficiency. Informational efficiencyInformational efficiencyThe degree to which market prices correctly and quickly reflect information and thus the true value of an underlying asset. X-efficiencyX-efficiencyThe ability of a firm to get maximum output from its inputs. Failure to do so, called X-inefficiency or technical inefficiency, may be due to lack of incentives provided by competition. Improvement in X-efficiency is one hypothesized source of gain from trade. Term is due to Leibenstein (1966). Pricing efficiencyPricing efficiencyAlso called external efficiency; a market characteristic that prices at all times fully reflect all available information that is relevant to the valuation of securities. EfficiencyEfficiencyThe degree and speed with which a market accurately incorporates information into prices. Further SuggestionsSemistrong form efficiencyInformational efficiency Allocational efficiency Allocative efficiency Engineering efficiency Capital market efficiency Riegle Neal Interstate Banking and Branching Efficiency Act of 1994 Efficiency locus Marginal efficiency of capital Efficiency Economic efficiency |
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