The principle of finance that "financial markets are efficient in pricing securities" implies that the prices of securities reflect all information available to the public and that when new information becomes available,prices quickly change to reflect that information.

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This principle is known as "efficient market hypothesis" and is widely accepted in finance theory. It suggests that it is not possible to consistently outperform the market by using publicly available information as it is already reflected in security prices. However, the degree of efficiency of financial markets can vary depending on the level of information transparency and market participant behavior.

The Principle of Finance That "Financial Markets Are Efficient in Pricing