Semi-Strong Form Efficiency


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.

BREAKING DOWN '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.

  1. Strong Form Efficiency

    The strongest version of market efficiency. It states all information ...
  2. Random Walk Theory

    The theory that stock price changes have the same distribution ...
  3. Fundamental Analysis

    A method of evaluating a security that entails attempting to ...
  4. Efficient Market Hypothesis - EMH

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

    One of the different degrees of efficient market hypothesis (EMH) ...
  6. Technical Analysis

    A method of evaluating securities by analyzing statistics generated ...
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