An Inefficient Market is the opposite of a perfect market. It is one that does not succeed in incorporating all available information into a true reflection of an asset's fair price. In other words, an inefficient market fails to reflect the full value of an asset, and is unable to accurately reflect the market's state or supply-demand balance.If a market is to function properly, all participants must be able to update their knowledge using all available information and data in a manner that produces true market prices. In other words, the price at which one asset trades must correspond with the fair value of that asset.In economics, an inefficient market is one where there are asymmetries in information, transaction costs, etc., which causes mispricing. Market inefficiencies are everywhere and you can always find them. Just think about how many stock markets across the world have been manipulated due to manipulation from inside or outside of the market (e.g. Japan).
