The historical development of any market may influence its current efficiency; mature markets may have established practices that foster efficiency, while newer markets may still be developing:

• The speed and accuracy with which information is made available to market participants is critical. Markets are more efficient when information flows freely and quickly. The presence of information asymmetry, where some participants have access to information that others do not, can hinder efficiency.
• The number and diversity of participants in the market can affect efficiency. A larger pool of investors leads to more viewpoints and better price discovery. Institutional versus retail investors can also have varying impacts; institutional investors typically have more resources and information analysis capabilities.
• A market with high liquidity allows for easier buying and selling, which facilitates quicker price adjustments to new information. Lack of liquidity can result in larger price swings and delayed responses to information.
• High transaction costs can discourage trading and limit the number of transactions, reducing market efficiency. Lack of liquidity can result in larger price swings and delayed responses to information.

Innovations in trading technology, analytics, and communication have a significant impact on market efficiency by speeding up transactions and improving information access.

Elaboration:

The tendency to ascribe to the market economy the characteristic of being something other than the events caused by the choices and actions of individuals is incorrect. The market arises as a result of the willingness of individuals to interact. Every development in the market is the outcome of purposive actions on the part of individuals who are seeking to improve their own state of affairs; this process of economic interaction and cooperation is the essence of the market; the market is not something physical but a process. Through the consummation of market transactions, individuals seek to improve their situations, i.e., enhance their own subjective satisfactions. The prices that emerge in the market are not unexplainable; they always are the result of subjective valuations expressed by individuals who choose to buy or sell or to abstain from either action.

In my opinion only, محمد سعد جودة , the most important factor is the free flow of information in the body economic,with lowest intervention by the body politic. In this sense, financial markets are extremely dependent on the dynamic interplay of central and commercial banking, i.e. the politics of money.

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There have been three great inventions since the beginning of time: fire, the wheel, and central banking.

American humorist Will Rogers (1879-1935)