Efficient Markets

An efficient market is one in which the securities prices reflect all available information. Depending on the information available, markets are classified as weak form, semi-strong form, and strong form of market efficiency. In the weak form, the securities prices reflect only the past information. In the semi-strong form, prices incorporate all the information available in the public domain. In the strong form, prices reflect all information that any investor can acquire, including insider information.

Leave a Reply