Information Efficiency of Czech Capital Market

Information Efficiency of Czech Capital Market

Paper in proceedings (conference paper)

Capital market is a place on which effective supply and demand interact to set prices of financial assets – rates. Rate of a financial asset normally provides significant information signals for issuing companies, shareholders, and potential investors. Efficient fulfillment of this function depends on how the market price reflects all available relevant information. In 1995 ca. 2400 public issues were introduced in the Czech capital market, out of which only an insignificant part meets the volume requirements for public trading at this point of time. The process of re-licensing and subsequent eliminating of issues that failed to meet the requirements represents an improvement in information effectiveness of the capital market

Capital market is a place on which effective supply and demand interact to set prices of financial assets – rates. Rate of a financial asset normally provides significant information signals for issuing companies, shareholders, and potential investors. Efficient fulfillment of this function depends on how the market price reflects all available relevant information. In 1995 ca. 2400 public issues were introduced in the Czech capital market, out of which only an insignificant part meets the volume requirements for public trading at this point of time. The process of re-licensing and subsequent eliminating of issues that failed to meet the requirements represents an improvement in information effectiveness of the capital market

Capital Market, information efficiency, price of shares

REŽŇÁKOVÁ, M., ŠEDOVÁ, J.

01.01.2001

EU Bratislava, Podnikovohospodárska fakulta v Košiciach

Košice

80-225-1446-2

International conference “Ekonomika firiem 2001"

376

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