Market inefficiencies occur when asset prices do not accurately reflect all available information. This can happen due to various factors, such as investor behavior, lack of information, or external influences. As a result, some assets may be undervalued or overvalued, leading to potential opportunities for investors to profit. These inefficiencies can manifest in different forms, such as arbitrage opportunities, where traders exploit price differences in different markets. Additionally, behavioral finance suggests that psychological factors can lead to irrational decision-making, further contributing to market inefficiencies. Understanding these concepts can help investors make more informed choices.