Question

What is the difference between an efficient capital market and an operationally efficient capital market?

What is the difference between an efficient capital market and an operationally efficient capital market?

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Answer #1

Efficient Capital Market refers to the market where stocks, shares and securities are traded when price information are readily available . In efficient capital market new information is reflected very soon in terms of share prices.

Whereas operational efficient capital market refers to the capital market that can be allocated without much costs that reduce the risk of an investment portfolio. Investment funds are also often analyzed by their exclusive operational efficiency. In operational efficient capital market trade in securities with less cost and produce better results effectively and efficiently

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