The efficient-market hypothesis asserts that information is efficiently reflected in asset prices. Three forms of efficiency are identified:
A nation’s economy that is progressing toward becoming advanced, as shown by some liquidity in local debt and equity markets and the existence of some form of market exchange and regulatory body
A stock or any other security representing an ownership interest
Exchange traded funds (ETFs) are funds traded on the stock exchange. ETFs can invest in stocks, bonds or commodities. They generally track market indices (such as the MSCI) and are quoted intraday, close to their theoretical net asset values. ETFs offer investors access to diversified and passive liquid portfolios at low cost.