Q » What is the efficient market hypothesis (EMH) and its three forms?

John

17 Oct, 2025

0 | 0

A » The Efficient Market Hypothesis (EMH) posits that financial markets are informationally efficient, meaning asset prices reflect all available information. EMH has three forms: the weak form suggests prices reflect past market data, the semi-strong form asserts prices incorporate all publicly available information, and the strong form claims prices instantly reflect all information, public and private. This implies that consistently outperforming the market is impossible through analysis alone.

Michael

17 Oct, 2025

0 | 0

Still curious? Ask our experts.

Chat with our AI personalities

Steve Steve

I'm here to listen you

Taiga Taiga

Keep pushing forward.

Jordan Jordan

Always by your side.

Blake Blake

Play the long game.

Vivi Vivi

Focus on what matters.

Rafa Rafa

Keep asking, keep learning.

Ask a Question

💬 Got Questions? We’ve Got Answers.

Explore our FAQ section for instant help and insights.

Question Banner

Write Your Answer

All Other Answer

A »The Efficient Market Hypothesis (EMH) posits that asset prices fully reflect all available information. It has three forms: the weak form, which asserts that prices incorporate historical data; the semi-strong form, which claims prices adjust to publicly available new information; and the strong form, which suggests prices reflect even insider information. EMH implies that consistently outperforming the market is challenging without taking on higher risk.

Daniel

17 Oct, 2025

0 | 0

A »The efficient market hypothesis (EMH) states that financial markets reflect all available information. It has three forms: weak (past prices are reflected), semi-strong (public information is reflected), and strong (all information, public and private, is reflected). For example, if a company's stock price immediately adjusts to new earnings data, it supports the semi-strong form of EMH.

Print321

17 Oct, 2025

0 | 0

A »The Efficient Market Hypothesis (EMH) posits that asset prices reflect all available information, making it impossible to consistently outperform the market. Its three forms are: the weak form, where prices reflect past market data; the semi-strong form, where prices reflect all public information; and the strong form, where prices reflect all information, public and private, implying no advantage from insider knowledge.

Joseph

17 Oct, 2025

0 | 0

A »The Efficient Market Hypothesis (EMH) posits that financial markets reflect all available information, making it impossible to consistently achieve abnormal returns. It has three forms: weak (past prices reflected), semi-strong (public information reflected), and strong (all information, public and private, reflected), each representing a different level of market efficiency.

William

17 Oct, 2025

0 | 0

A »The Efficient Market Hypothesis (EMH) posits that asset prices fully reflect all available information. Its three forms include the weak form, where prices reflect past market data; the semi-strong form, where prices adjust to publicly available new information; and the strong form, where prices account for all information, public and private. For example, if EMH holds, consistently beating the market through stock analysis is impossible.

James

17 Oct, 2025

0 | 0

A »The Efficient Market Hypothesis (EMH) states that financial markets reflect all available information. It has three forms: weak (past prices are reflected), semi-strong (all public information is reflected), and strong (all information, public and private, is reflected), each representing a different level of market efficiency.

David

17 Oct, 2025

0 | 0