Strong form of the EMT

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Strong form of the EMT

Theory that market prices reflect all relevant publicly and privately available information. Defined by Eugene F. Fama in 1970.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Strong Form of the EMT

The most controversial form of the efficient markets theory on how markets work. It holds that the market efficiently deals with all information on a given security and reflects it in the price immediately. Even insider information is immediately reflected in security prices. Therefore, the model holds that technical analysis, fundamental analysis, and any speculative investing based on them are useless. Investors and academics disagree on how well the model works. See also: Weak form of the EMT, Semi-strong form of the EMT.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
Segezha Group showcased historically strong efficiency by posting a record OIBDA margin, while growing sales.
SP's standalone credit profile reflects its monopoly position in electricity and gas transmission and distribution in Singapore, almost wholly regulated earnings providing stable and predictable cash flows, a strong efficiency track record, and a stable and relatively mature regulatory regime.
We expanded our net interest margin to 4.33% in the fourth quarter of 2018 compared with 4.17% in the third quarter of 2018 and maintained a strong efficiency ratio of 50.44%.
"Alongside this, supply chains maintained a strong efficiency, with delivery times decreasing at a sharp rate," Stanbic Kenya economist for East Africa Jibran Qureishi said in a statement on Friday.
Analysts said GCC banks in general have adapted their cost base to the slowing economic environment, maintaining strong efficiency. With interest rates expected to rise in line with US monetary policy tightening, as GCC currencies are pegged to the US dollar.
Banks have adapted their cost base to the slowing economic environment, maintaining strong efficiency. Consolidation will ease competition and also alleviate some pressure on profitability.
"Banks in GCC countries have adapted their cost base to the slowing economic environment, maintaining strong efficiency. Consolidation will ease competition and also alleviate some pressure on profitability," the report said.
High efficiency ratings A product's strong efficiency outputs are key for those looking for the most economical form of home heating.
when DMU ([a.sub.0], [b.sub.0]) fulfil [[theta].sup.*] = 1 and [s.sup.-*] = 0 it is strong efficiency;
Nevertheless, continued high credit growth, ability to faster asset re-pricing and strong efficiency moderated these pressures.