Testing the Efficiency of the Amman Financial Market at the weak level in the Banking and insurance Companies sectors from 2003 to 2007

Abstract

The problem of the research lies in testing the efficiency of the Amman financial market at the weak level. This problem is one of the pressing problems that haunt economists, and this is due to the failure to communicate accurate information about each sector of the banking and insurance companies. The study also tends to test the efficiency of the Amman financial market at the weak level from the point of view of investors, brokers and market workers. The research concluded that the banking and insurance companies sectors, in general, are inefficient at the weak level on the average stock turnover index, the concluded contracts index, the trading volume index, and the stock closing price index. The sectors of banks and insurance companies were not exposed to the existence of sudden rises and falls in the rate of turnover of shares from the arithmetic mean of their turnover, the number of contracts concluded, the average number of shares, trading volume and closing prices. The Amman financial market is inefficient according to the estimates of investors, brokers and market workers.