# Market Efficiency

*Saving & Investing — Finicade finance glossary*

The idea that prices already reflect all available information, so consistently beating the market is very hard. If it's true, your best bet is cheap, broad index funds rather than stock-picking.

**Also known as:** efficient market hypothesis, emh

**Related terms:** [Index Fund](https://finicade.com/glossary/index-fund), [Behavioral Biases](https://finicade.com/glossary/behavioral-biases), [Random Walk](https://finicade.com/glossary/random-walk)

**Taught in:** Charter Climb — Market Organization & Indexes

Source: https://finicade.com/glossary/market-efficiency