efficient markets hypothesis
- efficient markets hypothesis
Fin
the hypothesis that the stock market responds immediately to all available information, with the effect that an individual investor cannot, in the long run, expect to obtain greater than average returns from a diversified portfolio of shares. There are three forms: the weak form, in which security prices instantaneously reflect all information on past price and volume changes in the market; the semi-strong form, in which security prices reflect all publicly available information; and the strong form, in which security prices reflect instantaneously all information available to investors, whether publicly available or otherwise.
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efficient markets hypothesis — EMH The theory that abnormal profit cannot be made by investing in Securities in a *market in which information is shared by all participants. There are three forms of efficient markets: (i) a strong form, in which the prices of Securities fully… … Auditor's dictionary
efficient markets hypothesis — A theory holding that transactors in financial markets cannot make abnormal returns on the basis of exploiting information, since market prices incorporate all available information. The economist Eugene Fama has defined three categories of… … Accounting dictionary
efficient markets hypothesis — A central theory of modern finance holding that transactors in financial markets cannot make abnormal returns on the basis of exploiting information, since market prices incorporate all available information. The economist Eugene Fama defined… … Big dictionary of business and management
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