Efficient markets provide market prices of stocks

Efficient markets provide daily market prices of certain stocks. In relation to stocks, you may instantly get, through internet or a direct phone call to your agent, real time market prices. You may easily get spreads among  stocks offers and demand. The spread is the difference that exists between the selling and buying prices demanded.

Market prices of bonds still do not have access to real time prices. These are also obtained through internet, but are not as transparent as those from stocks. The reason is that each negotiator has its own market price for each bond in its inventory and the commercial margin and transaction costs are hidden under these prices. Consequently, investors find that looking for similarities in the comparison of market prices among similar bonds to get a positive negotiation, is very difficult. The stock markets in the United States are extent because there are very many buyers and sellers. While more buyers and sellers exist in a market more investors can be sure to get a fair market price.

The use of internet and information about the stock market that is permanently broadcasted on TV has provided a greater transparence to stock prices. Investors can observe the changes in price between negotiations as well as the quick transmission of information that could affect the prices in the stock markets. Because the stock prices in an efficient market reflect all the relevant data, it is difficult for an investor to receive unfair prices for the stocks being negotiated.

Because bonds market price is less transparent you may have more possibilities of being object a fraud in the buying prices, particularly on scarce negotiation bonds or no liquidity bonds. The reason is that each negotiator values its bonds within its portfolio without taking into account the pricing of similar bonds by other negotiators. This transaction cost is an indicator of liquidity of these market valuables.

For example, if you buy a $1000 bond and you immediately sell it at $910 indicates not only a wide spread but also a lack of liquidity. A value with liquidity is that which is priced fairly, and that in a negotiation it will only lose a small amount of its real value.