efficient market theory
An economic principle that states that the market price of a security or commodity reflects its underlying intrinsic value. In other words, efficient market theory presumes that the selling price of a stock, for example, is set by the balance between supply and demand, which in turn has been influenced by taking into account everything good and everything bad known about the company and its products.
Browse by Subjects
supply and demand
See All Related Terms »

stock manipulation
inactive market
Buying On Margin
basis of assessment
make up