Semi-Strong Form Efficiency

Dictionary Says

Definition of 'Semi-Strong Form Efficiency'

A class of EMH (Efficient Market Hypothesis) that implies all public information is calculated into a stock's current share price. Meaning that neither fundamental nor technical analysis can be used to achieve superior gains.
Investopedia Says

Investopedia explains 'Semi-Strong Form Efficiency'

This class of EMH suggests that only information that is not publicly available can benefit investors seeking to earn abnormal returns on investments. All other information is accounted for in the stocks price and, regardless of the amount of fundamental and technical analysis one performs, above normal returns will not be had.

Related Definitions

  • Efficient Market Hypothesis - EMH

    An investment theory that states it is impossible to "beat the market" because stock market efficiency causes existing share prices to always incorporate and reflect all relevant ...
    Read More »
  • Fundamental Analysis

    A method of evaluating a security that entails attempting to measure its intrinsic value by examining related economic, financial and other qualitative and quantitative factors. ...
    Read More »
  • Random Walk Theory

    The theory that stock price changes have the same distribution and are independent of each other, so the past movement or trend of a stock price or market cannot be used to predict its ...
    Read More »
    • Strong Form Efficiency

      The strongest version of market efficiency. It states all information in a market, whether public or private, is accounted for in a stock price. Not even insider information could give ...
      Read More »
    • Technical Analysis

      A method of evaluating securities by analyzing statistics generated by market activity, such as past prices and volume. Technical analysts do not attempt to measure a security's ...
      Read More »
    • Weak Form Efficiency

      One of the different degrees of efficient market hypothesis (EMH) that claims all past prices of a stock are reflected in today's stock price. Therefore, technical analysis cannot be ...
      Read More »
    • False Market

      A market where prices are manipulated and impacted by erroneous information, preventing the efficient negotiation of prices. These types of markets will often be marred by volatile ...
      Read More »

Articles Of Interest

Partner Links