A market that establishes correct prices for the securities that firms sell and allocates funds to their most productive uses is called a(n) ________.

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An efficient market is one in which prices for securities are always accurate, quickly incorporating all publicly available information. As a result, the allocation of funds is based on accurate pricing, leading to the optimal allocation of resources in the economy. Future markets are venues for buying and selling standardized futures contracts, while forex markets facilitate the exchange of different currencies. Weak-form markets are markets in which pricing data is already reflected in past prices, but not perfectly so.

A Market That Establishes Correct Prices for the Securities That