Efficient Markets Efficient Markets Securities in a particular market are affected by information. Rates of return on various securities are directly related to their risk.
Sellers often encounter many buyers.
This makes the security highly liquid, thus reducing one form of the investor s risk. A large number of participants in a specific marketplace offer investors a favorable selling environment in which they can demand premium prices for their stocks. Operational efficiency is a type of measurement with regard to how well things function in terms of speed of execution and accuracy. The numbers of orders that are filled and lost are type of measure that operational efficiency are concerned with. Also, the time that elapses between a market order and its eventual purchase are also type of operational efficiency.