Efficient Market Hypothesis

Marketing dictionary

Efficient Market Hypothesis

In its so--called "semi-strong" form, this hypothesis states that in setting security prices at any time, the market correctly uses all publicly available information about the underlying corporations whose stocks are traded in the market. In the absence of inside information, this implies that investors cannot consistently achieve performance in excess of the market "average" for any given level of risk. The "semi-strong" hypothesis enjoys wide acceptance in financial economics. Source: AMA

Back to previous
Rate this term

Search

Browse A-Z

Select a letter to find terms listed alphabetically.