In answering the question of whether it is important for stock markets to be efficient in order to fulfill their roles, it is important to discuss the roles and functions of the stock market and why it is important to the market stock market. The market must be efficient in order to be able to function and play its role in allocating resources efficiently. Second, it is essential to examine the concept of capital market efficiency and what it means. Clearly, market efficiency is a controversial concept that generates strong opinions, partly because of differences in how people explain the concept, and partly because it is believed to determine the how an investor will approach an investment. Finally, discuss the types of efficiency and whether it is only important for the stock market to be allocatively efficient to function or whether it is other types of efficiency that also help the stock market to fulfill its roles. Stock markets are markets where government and industries can raise long-term capital and where investors can buy and sell securities. Stock markets are established for the purpose of assisting, regulating and controlling the activities of buying, selling and dealing in securities. They provide a market for trading securities to individuals and organizations seeking to invest their savings or excess funds through the purchase of securities. Stock markets play a role in overseeing transactions to ensure fairness and efficiency. Stock markets play an important role in ensuring fair prices in the market. The stock market mechanism allows buyers and sellers of securities to receive the best possible price for a particular security. There are many roles and functions...... middle of article ......OLD CRISIS." UNSW Law Journal, 2010: 714-745.Farma, Eugene F. "Efficient Capital Markets: A review ." Journal Of Finance, 1970: 383-417. Houa, Han and Su-Yin Cheng. “The Roles of the Stock Market in the Finance-Growth Nexus: Time Series Cointegration and Causality Evidence from Taiwan, 2010: 975–. 981. Pike, Richard and Bill Neale. Corporate Finance and Investments: Decisions and Strategies. Harlow: Pearson Education, 2009. Capital Markets Rob, Dixon and Foreign Exchange Market; Janette. Introduction to Stock Market Investing. 1983. S, Lumby and Jones C. Theory and Practice of Corporate Finance: Thomson Publishing Services, 2011. Watson, Denzil and Antony Head: Pearson Education.., 2010.