Chicago Booth BCPT: Price Theory (Topic)最新文献

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Chicago Booth BCPT: Price Theory (Topic) Pub Date : 2011-10-12 DOI: 10.2139/ssrn.1942820

Dr. Sisira Kanti Mishra

{"title":"Capital Market Efficiency","authors":"Dr. Sisira Kanti Mishra","doi":"10.2139/ssrn.1942820","DOIUrl":"https://doi.org/10.2139/ssrn.1942820","url":null,"abstract":"Capital market is one of the most important segments of the Indian financial system. It is the market available to the companies for meeting their requirements of the long-term funds or assets that is share and debentures. In other words, it is concerned with the raising of money capital for purposes of making long-term investments. These securities are regularly transacted that is sold and purchased at particular price which is supposed to reflect all the information relating to the issuing company. In order to understand why good financial decisions are reflected in positive share prices adjustment as well as how the securities are valued or priced in the market, it is necessary to have an understanding of the efficiency of the market. The speed at which the movement in prices appears and the speed at which the prices of securities reach an equilibrium level depends on the efficiency of the capital market. The efficiency of the capital market is often defined in terms of its ability to reflect the impact of all relevant information in the prices of securities. An efficient market is one which ensures that the prices of the securities quickly adjust to new information and reflect it in market prices of the securities. The information is reflected in share in such a speed that there are no opportunities for the investors to profit from publicly available information. The market consists of a number of individuals and institutions (including the Government) that canalizes the supply and demand for long-term capital and claims on it. The demand for long term capital comes predominantly from private sector manufacturing industries, agriculture sector, trade and the Government agencies. While, the supply of funds for the capital market comes largely from individual and corporate savings, banks, insurance companies, specialized financing agencies and the surplus of Governments.","PeriodicalId":174816,"journal":{"name":"Chicago Booth BCPT: Price Theory (Topic)","volume":"40 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2011-10-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116344750","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

引用次数: 20