Semistrong Form of the Efficient Markets Theory

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Semistrong Form of the Efficient Markets Theory

A controversial model on how markets work. It states that the market efficiently deals with nearly all information on a given security and reflects it in the price immediately. The model holds that technical analysis, fundamental analysis, and any speculative investing based upon them, are useless because any facts that might cause technical or fundamental changes are already reflected in the security price. Investors and academics disagree on how well the model works. See also: Weak form of the EMT, Strong form of the EMT.
References in periodicals archive ?
These three versions are known as (i) weak-form efficiency, (ii) semi-strong form efficiency and (iii) strong-form efficiency.
The results of the weak and semi-strong form efficiency tests indicate that the efficient market hypothesis holds for the foreign exchange market of Sri Lanka.
This anthology is hastily known as semi-Strong form efficiency.
Under semi-strong form efficiency, security prices reflect all publicly available information.
Semi-strong form efficiency uses variables that are obviously publicly available, and strong form uses anything else.