Capital Market Institution Affiliation Date: In the modern economy various markets set prices for products. The majority of the costs include the future value of that product. On the other hand some other markets tend to incorporate distinct values as they price products. The efficient capital market is an excellent example of a market that integrates the value of securities of a product in its price. This paper seeks to give the meaning of an efficient capital market. It also incorporates the behavioral challenges affecting the achievement of efficiency. The paper describes the forms of market efficiency and implications on corporate efficient capital market holds for the markets that are carefully regulated. In the real estate markets the buyers and sellers are emotional. Further the efficient capital market seems like one that applies to open markets. On the other hand I trust that the real estate is more veered towards a practical utility value rather than a hypothetical one that is in the case of the efficient capital market. References Birău R. (2011). Efficient capital market. The Young Economists Journal (17) 15-19. Top of Form McMillan M. G. (2011). Investments: Principles of portfolio and equity analysis. Hoboken N.J: Wiley. Bottom of Form [...]
Purpose of Assignment The purpose of this assignment is to allow the student an opportunity to explain what it means to have an efficient capital market. Students will gain an understanding of the different levels of market efficiency and how behavioral finance can inhibit reaching market transparency. Assignment Steps Resources: Microsoft® Word Explain in 525 words what it means to have efficient capital market, including: Describe the behavioral challenges in achieving efficiency. Discuss the three forms of market efficiency. What are the implications to corporate finance? Would you consider the real estate market an efficient capital market? Please explain why or why not.