An efficient capital market is one which information is processed to everyone involved as soon as it makes its way into the organization (Brigham & Houston, 2012) . This information is then used to increase the value and thus price of the offerings. The implications of market efficiency are two. One of them is that the abnormal stock returns will only react to the information that is already present about the stock’s value (Sapate, 2017) . However, the information might not have any serious returns which thus means that regardless, the systems for influencing the market are doomed to fail.
The three forms of market efficiencies are weak, semi-strong and strong. The semi-strong form of market efficiency on the other hand only focuses on information that is publicly available in setting the prices of the stock (Sapate, 2017) . The strong form market efficiency on the other hand synchronizes the information that everybody in the organization. The weak and the semi-strong forms of market efficiencies are the most commonly-used and the strong market efficiency is rarely used (Sapate, 2017) . The reason is that the immediate release of some information might inspire fear and selfishness in them which can end up being bad in business.
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Indeed, efficient markets can have significant implications when it comes to corporate finance. The accounting and financial choices present under market efficiency are diverse and can influence accounting earnings without necessarily having any sort of effect on the prices of the stock (Frömmel, 2017) . With market efficiency it becomes very possible and easy to know whether or not it will be possible to carry out specific activities in the organization. These include issuing equity and an Initial Public Offering (Brigham & Houston, 2012) . Efficient markets also makes it possible for the financial managers to be able to decide on carrying out some transactions. For instance, speculation of a rise in interest rates can push an organization to borrow early.
Indeed, I think that the real estate market is one of the most efficient ones around. The reason is that it relies on the stakeholders having all the relevant information for the sale to happen. As such, if, for instance, a new offer is available for a house, the agent has to know it, the owner as well as other potential clients (Frömmel, 2017) . That way, it will be possible to look and see inspire an increase of the price. If the supposed buyer loves the house save for some aspect of it, he might decide to pass. If the element can be changed such as a swimming pool filled or dug, then it would be possible for the investor to do that and complete the sale.
The trends that take place in the industry are also almost always tracked and distributed to the different players in the market who want to know what goes on (Brigham & Houston, 2012) . The price of the product depends on its demand and supply which is what eventually goes on to describe its true value at that time. In the market, all the information about the particular property can be provided to its purchase price which will be known by the buyer, seller and agent (Iverson, 2013) . However, it might not be very efficient as in the case of a piece of information that could compromise the sale might not be presented voluntarily.
References
Barnes, P. (2016). Stock Market Efficiency, Insider Dealing and Market Abuse. CRC Press.
Brigham, E. F., & Houston, J. F. (2012). Fundamentals of Financial Management. Cengage Learning.
Frömmel, M. (2017). Finance 2: Asset Allocation and Market Efficiency. Books on Demand.
Iverson, D. (2013). Strategic Risk Management: A Practical Guide to Portfolio Risk Management. John Wiley & Sons.
Sapate, U. B. (2017). Econometric Analysis of Weak Form of Market Efficiency. Educreation Publishing.
