Strong Form Efficiency

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DEFINITION of '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 an investor the advantage.

INVESTOPEDIA EXPLAINS 'Strong Form Efficiency'

This degree of market efficiency implies that profits exceeding normal returns cannot be made, regardless of the amount of research or information investors have access to.

RELATED TERMS
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