An efficient market is one in which prices reflect all available public information.

Question

Quizplus · Accepted Answer

In an efficient market, prices are determined by the supply and demand of all market participants, and all available public information is reflected in the prices. This means that any news, earnings reports, or other information that might affect the price of a security is quickly incorporated into the market price, making it difficult for investors to consistently outperform the market by finding undervalued or overvalued stocks.

An Efficient Market Is One in Which Prices Reflect All