Definition for : Efficient market
GLOSSARY LETTER
An efficient market is one in which the prices of financial securities at any time rapidly reflect all available relevant information. In such a market, Future returns are unpredictable and prices of securities are always at their "right" Value. An efficient market can be weak, semi-strong or strong. Also called perfect market or Market in equilibrium.
(See Chapter 15 The financial markets of the Vernimmen)
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