Exchanges are physical trading locations. Futures contracts are traded on exchanges such as the CBOT, the Chicago Mercantile Exchange, and the New York Futures Exchange. International markets Foreign securities markets. Important to look at since stock prices tend to move together, and general market movements are related to economic conditions. Efficient markets are markets in which information is reflected rapidly into asset prices.
Evidence indicates that markets are semistrong form efficient.
Implications are that investors can earn abnormal profits if they have inside information. Illegal insider trading is trading on material, non-public information.