... given moment determines prices in the secondary market. In security markets transaction prices are usually made public, making the market transparent, this in turn allows investors to make more informed decisions and give them confidence to trade in the system. Nevertheless how does the secondary market; being a mechanism for pricing traded assets make it an efficient market? The fact is that when people trade, they are purchasing a share or stock now, which they hope will be worth more in the future and it is this which makes the secondary market efficient. The price of stocks and shares are constantly changing as the market analyses and incorporates new information about the share's future prospects. It is the analysts and traders who drive the market; they present information and data in a comprehensible form using powerful computer systems, which also adds to the efficiency. Therefore if the stock market is efficient ...

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