Informationally Efficient Market


Informationally Efficient Market
A theory, which moves beyond the definition of the efficient market hypothesis, that states that new information about any given firm is known with certainty, and is immediately priced into that company's stock.

Before any big news release, a company's stock may change in value, due to investors and traders speculating on the stock's intrinsic value after the news release. In an informationally efficient market, there will be little to no price change after the news release comes out. Under this hypothesis any changes in stock price, after a news release, would be due to the interpretation of the news by individual analysts.


Investment dictionary. . 2012.

Look at other dictionaries:

  • Efficient-market hypothesis — Financial markets Public market Exchange Securities Bond market Fixed income Corporate bond Government bond Municipal bond …   Wikipedia

  • Market Intelligence — (often contracted to MARKINT) is a relatively new intelligence discipline that exploits open source information gathered from global markets. It relies solely on publicly available information such as market prices and ancillary economic and… …   Wikipedia

  • Market value — For values of entire markets, see Market size. Market value is the price at which an asset would trade in a competitive auction setting. Market value is often used interchangeably with open market value, fair value or fair market value, although… …   Wikipedia

  • Modern portfolio theory — Portfolio analysis redirects here. For theorems about the mean variance efficient frontier, see Mutual fund separation theorem. For non mean variance portfolio analysis, see Marginal conditional stochastic dominance. Modern portfolio theory (MPT) …   Wikipedia

  • Economics — This article is about the social science. For other uses, see Economics (disambiguation). For a topical guide to this subject, see Outline of economics. Economics …   Wikipedia

  • Welfare economics — Economics …   Wikipedia

  • Allocational Efficiency — A characteristic of an efficient market in which capital is allocated in a way that benefits all participants. Allocational efficiency occurs when organizations in the public and private sectors can obtain funding for the projects that will be… …   Investment dictionary

  • Sanford Grossman — Sanford Jay Grossman, auch Sandy Grossman genannt (* 21. Juli 1953 in Brooklyn, New York City), ist ein US amerikanischer Wirtschaftswissenschaftler und Finanzberater. Inhaltsverzeichnis 1 Leben und Wirken 2 Auszeichnungen 3 Mitgliedschaften …   Deutsch Wikipedia

  • Sanford J. Grossman — Sanford Jay Sandy Grossman (born July 21, 1953) is an American economist specializing in quantitative finance.He earned his A.B. in 1973, his A.M. in 1974 and Ph.D. in 1975, all from the University of Chicago. He is currently the chairman of… …   Wikipedia


Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.