Generally it is assumed that it is not necessary for everyone in a financial market to be well informed about a security and also that all the participants should have the ability to perceive, analyse and use the information to their advantage. All the efficient market requires is that a few people have the information and based on the information of the few people, the entire market will be well informed. Thus the efficiency of the market is determined purely on the basis of the availability of the information. With this background this paper brings out the determinants of the stock market efficiency and its relative effects on the trading of the securities being undertaken in the market.
Having studied the broad outline of the research on the stock market efficiency as outlined in the introduction, this paper proceeds to define the boundaries of this research field namely the Research approach, Research Strategies, Data Collection Methods and dissemination of the data and information to arrive at the conclusions of the research.
The quantum and nature of the date provides the alternative methods of collecting them. The Research may follow a 'Deductive Approach' by testing the theoretical propositions with the adoption of suitable testing methods or an 'Inductive Approach' by collecting relevant empirical data and evolving the necessary theories based on the data collected. For the present study on the Stock Market Efficiency, the inductive approach will be followed as there is no previous theory or hypothesis which needs to be proved by testing.
2.2 Research Strategy:
Due to the nature of the report and the decision to use an inductive approach, it has been chosen to use The Grounded Theory where the procedures are designed to build and explain or to 'generate a theory' around the central theme that emerges from research data. It also provides the structure often lacking in other qualitative approaches without sacrificing flexibility or rigor (Saunders et al., 2003) By Research Strategy we mean the dissemination of the data collected by whatever means, presenting them in a coherent and comprehensive manner which provides the necessary conclusive information on the research project and the issues connected therewith.
2.3 Data Collection Methods:
The general belief of business research is often thought of as collecting data, constructing questionnaires and analysing data. But it also includes identifying the problem and how to proceed solving it (Ghauri et al., 1995).
Data sources can be described as the carriers of data (information). There are to types of data sources (Ghauri et al., 1995)
1. Primary data (field) is collected specifically for the research project. This will be in form observations and interviews.
2. Secondary data (desk) is collected by others. These include academic and non-academic sources.
Since the study of the Stock Market efficiency will be using