Financial market efficiency
| Part of a series on |
| Financial markets |
|---|
| Bond market |
| Stock market |
| Other markets |
| Alternative investment |
| Over-the-counter (off-exchange) |
| Trading |
| Related areas |
There are several concepts of efficiency for a financial market. The most widely discussed is informational or price efficiency, which is a measure of how quickly and completely the price of a single asset reflects available information about the asset's value. Other concepts include functional/operational efficiency, which is inversely related to the costs that investors bear for making transactions, and allocative efficiency, which is a measure of how far a market channels funds from ultimate lenders to ultimate borrowers in such a way that the funds are used in the most productive manner.