Semi-Strong Form Efficiency

AAA

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 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 TERMS
  1. Efficient Market Hypothesis - EMH

    An investment theory that states it is impossible to "beat the ...
  2. Weak Form Efficiency

    One of the different degrees of efficient market hypothesis (EMH) ...
  3. Fundamental Analysis

    A method of evaluating a security that entails attempting to ...
  4. Technical Analysis

    A method of evaluating securities by analyzing statistics generated ...
  5. Random Walk Theory

    The theory that stock price changes have the same distribution ...
  6. Strong Form Efficiency

    The strongest version of market efficiency. It states all information ...
Related Articles
  1. Understanding Investor Behavior
    Active Trading Fundamentals

    Understanding Investor Behavior

  2. What Is Market Efficiency?
    Active Trading

    What Is Market Efficiency?

  3. Invest Without Stress
    Investing Basics

    Invest Without Stress

  4. Efficient Market Hypothesis: Is The ...
    Active Trading Fundamentals

    Efficient Market Hypothesis: Is The ...

comments powered by Disqus
Hot Definitions
  1. Ghosting

    An illegal practice whereby two or more market makers collectively attempt to influence and change the price of a stock. ...
  2. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  3. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  4. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  5. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
  6. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
Trading Center