The principle of finance that "financial markets are inefficient 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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The principle of finance that "financial markets are inefficient in pricing securities" suggests that there may be opportunities for investors to identify mispriced securities and earn abnormal returns. This principle implies that prices of securities may not always reflect all available information, and that it may take time for prices to adjust to new information.

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