Inefficient market

An inefficient market, according to efficient market theory, is one in which an asset’s market prices do not always accurately reflect its true value. These often lead to deadweight losses. Efficient market theory, or more accurately, the efficient market hypothesis (EMH) holds that in an efficient market, asset prices accurately reflect the asset’s true value. In an efficient stock market, for example, all publicly available information about the stock is fully reflected in its price. In an inefficient market, in contrast, all the publicly available information is not reflected in the price, suggesting that bargains are available—Read more at Investopedia. Kenton, Will. “Inefficient Market.” 1 April 2019