Strong Form Efficiency


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.

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.

  1. Semi-Strong Form Efficiency

    A class of EMH (Efficient Market Hypothesis) that implies all ...
  2. Weak Form Efficiency

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

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

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

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

    An investment theory that states it is impossible to "beat the ...
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