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
  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. Efficient Market Hypothesis - EMH

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

    A method of evaluating a security that entails attempting to ...
  6. Random Walk Theory

    The theory that stock price changes have the same distribution ...
RELATED FAQS
  1. What are the differences between weak, strong and semi-strong versions of the Efficient ...

    Though the efficient market hypothesis as a whole theorizes that the market is generally efficient, the theory is offered ... Read Full Answer >>
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