The Efficient capital markets are those in which market price reflect available information. This means that market price reflects the underlying present value of securities and there is no way to make usual or excess profits by using the available information. The states that the current prices of stocks already fully reflect all the information that is contained in the historical sequence of prices. The new price movements are completely random. This implies that technical analysis, which relies on charts of price movements in the past, is not a meaningful analysis for making abnormal trading profits.