Term paper on Capital market efficiency Essay Example | Topics and Well Written Essays - 6250 words

Term musical theme on Capital mart strength - Essay ExampleIn addition, reference is made to grocery store morality, at the level that ethics can secure, at least up to a level, foodstuff efficiency, cosmos related to all three aspects of market efficiency, i.e. knowledge, institutions and transactions. The literature developed in this field proves that existing enquiry in regard to market risks and potentials focuses on the potentials of markets to become efficient but also on the ability of certain financial systems to promote market efficiency. This is the case of the Islamic finance system which is higher(prenominal)ly tell from the conventional finance system at the following point in Islamic finance fierceness is given on the intervention of ethics in economic transactions. Because of this reason the reference to the Islamic finance system has been considered as quite necessary for evaluating the issues explored in this paper. It has been proved that it is not quite difficult for a market to be efficient, especially since efficient markets are not considered as perfect markets. Still, it can be rather difficult for those managing financial products to promote ethics in all financial transactions. Indeed, certain aspects of severally market are not aligned with the rules of market efficiency, as analyzed below. ... veloped in each market can be an indicative example of market efficiency, as described by theorists who have analyse the feature subject (Palan 2007). It should be noted that market efficiency is also described as smashing market efficiency (Kevin 2006). The two terms reflect almost the same phenomenon the development of a high range of economic activities with no delays or other failures within an environment that it is highly influenced by ethics (Kevin 2006). The only difference between the above two terms is the following one capital market efficiency refers to the potential of specific financial products to respond to the exp ectations of their investors while market efficiency refers to the expectations of all battalion living locally, i.e. within the territory in which the market involved is based, to take a return from their deposits or other investments (Palan 2007). The characteristics and the role of market efficiency have been highly explored in the literature. Different approaches have been use though for describing the grouchy concept (Mama 2010). In any case, it seems that the content of market efficiency is not standardized, depending on the market conditions and economic activities that the particular term has to reflect (Mama 2010). Reference can be made, in particular to the following forms of efficiency, as appeared in the modern market a) transactional efficiency this term is used in cabaret to show the costs and speed of reliably transferring funds between market participants (Mama 2010, p.10) b) from a different perspective, informational efficiency is a term used in order to show th e efficiency in regard to information (Mama 2010, p.11), meaning not only the information gathered in regard to the performance of a particular market but