Market Integrity, Market Efficiency, Market Accuracy

Abstract

Market integrity, market efficiency, and market accuracy are related, but distinctly different concepts which are often misunderstood or misused in public policy debates, especially with regard to corporate takeovers and corporate governance issues. This paper discusses the differences in these terms. It also attempts to clarify and differentiate them and thereby help inform the often heated debate over what these terms mean. Examples are discussed which demonstrate how misuse or misunderstanding of these terms can affect corporate decision making and public policy related to corporate governance issues and hostile takeovers.