Strong Form Efficiency

What is 'Strong Form Efficiency'

Strong form efficiency is 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.

BREAKING DOWN '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.

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RELATED FAQS
  1. What is an efficient market and how does it affect individual investors?

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  3. What does the Efficient Market Hypothesis have to say about fundamental analysis?

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