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    STUDIA OECONOMICA - Issue no. 1 / 2003  
         
  Article:   FINANCIAL MARKETS EFFICIENCY AND ASYMMETRY.

Authors:  DANA E. BAKO.
 
       
         
  Abstract:  This paper presents the views regarding the availability and the cost of information on the financial markets. One view, referred to as the efficient markets hypothesis, contends that information relevant to pricing of loans, securities and other financial assets is readily available to all borrowers and lenders at negligible costs. The other view, called asymmetry or the concept of asymmetric information, argues that the financial marketplace contains pockets of inefficiency in the availability and use of information. Some market players may possess special information that enables them to get a more accurate picture of the value and risk of certain assets. These “insiders” allegedly can earn excess returns by selectively trading financial and other assets based on special information they have been able to acquire – information that would be costly for others to obtain.  
         
     
         
         
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