Pricing Efficiency: Also called external efficiency; a market characteristic that prices at all times fully reflect all available information that is relevant to the valuation of securities.

 

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Pricing Efficiency: Also called external efficiency; a market characteristic that prices at all times fully reflect all available information that is relevant to the valuation of securities.

Semistrong-Form Efficiency: A form of pricing efficiency that profits the price of a security fully reflects all public information (including, but not limited to, historical price and trading patterns). Compare weak-f . . . View Full Definition

Marketplace Price Efficiency: The degree to which the prices of assets reflect the available marketplace information. Marketplace price efficiency is sometimes estimated as the difficulty faced by active management of ea . . . View Full Definition

Multiple Component Pricing: The practice of valuing farm milk according to the value of its protein, fat, and mineral content. This practice has been adopted by many regions for federal milk marketing orders. Historica . . . View Full Definition

Yield Curve Option-Pricing Models: The graphic depiction of the relationship between the yield on bonds of the same credit quality but different maturities. Related: Term structure of interest rates. Harvey (1991) finds that . . . View Full Definition

Marginal Efficiency Of Capital: The percentage yield earned on an additional unit of capital.

Job Pricing: The process of determining pay rates for jobs within the organization by analyzing industry or regional salary survey data in order to establish appropriate job pay rates.

Forward Pricing: A currency trades at a forward premium when its forward price is higher than its spot price.

Garman-Kohlhagen Option Pricing Model: Rising stock prices and increased market activity in an entire sector caused by a psychology change stemming from a major takeover involving two companies in the sector. Speculators feel oth . . . View Full Definition

Informational Efficiency: Organizations that furnish investment and other types of information, such as information that helps a firm monitor its cash position.