A WELL functioning stock market exchange facilitates the mobilisation of domestic resources and foreign portfolio flows and efficiently allocates these resources to promising opportunities and businesses, and to withdraw capital from less promising ones. On arrival of new information a good capital market quickly adjust the odds to reflect new information so that all bets bullish, bearish, or passive are fair.
One enters a market to buy or sell a good or service quickly at a price justified by the prevailing supply and demand. To determine the appropriate price, participants must have timely and accurate information on the volume and prices of past transactions and on all currently outstanding bids and offers. Therefore, one attribute of a good market is timely and accurate information.
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