# Information efficiency, strict (pure information effiency)

- Canonical URL: https://www.gerhardmerk.de/information-efficiency-strict-pure-information-effiency
- Post ID: 587702
- Modified: 2023-07-25T21:01:57+00:00
- Language: en

## Definition

If not defined otherwise, the fact that on the financial market announcements of all kinds - such as an increase in the key interest rate of the central bank, a profit warning of a stock corporation, a balance of payments crisis of a state - immediately cause the prices of the corresponding financial product to move. In other words, the speed of reaction (rapidity of response) on the - almost perfect - financial market is extremely high. This is because professional traders and private investors around the world are sitting in front of their screens at any given moment, placing buy and sell orders. - Nevertheless, the financial market as a whole and in its sectors is not a purely perfect market. For, as in other markets, there are participants with insider knowledge who can reap special benefits when buying and selling. - See ad hoc announcement, day trading, high-frequency trading, information. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

## Machine-readable

- Generator: Merk Knowledge 1.1.1