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.

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.
References in periodicals archive ?
Regulated, Monopoly, Network Utility: SP's low business risk is due to its monopoly position in electricity and gas T&D in Singapore; almost wholly regulated earnings, which provide stable and predictable cash flows; a strong efficiency track record; and a stable and relatively mature regulatory regime.
Nevertheless, continued high credit growth, ability to faster asset re-pricing and strong efficiency moderated these pressures.
The advent of IGBTs has yielded strong efficiency gains in electric drive technology.
Rising funding costs, competitive pressures driving down yields and increased provisioning expenses are likely to add to pressure on profitability while continued high lending volumes, the potential for higher asset re-pricing and strong efficiency will moderate these pressures.
The analysis of slack variables shows several facts, the use of slacks allowed to determine that for the period studied six out of sixteen banks accomplish the strong efficiency condition; it means they do not need any input reduction to reach the efficiency frontier, they have achieved a Pareto optimal condition.
This coupled with the bank's strong efficiency (cost-to-income ratio of 31% versus global ba2 peers at 56%), will also continue to support profitability in a context of regional margin pressures seen in the corporate lending and reduced liquidity stemming from prolonged low oil prices and commensurately higher funding costs.
These are elements of a strong efficiency program, but still fall short.
The “China Water Purifier Market Forecast & Opportunities, 2018” report reveals that the strong efficiency and multistage purification capabilities are driving the revenue growth of the membrane-based water purifier segment.
The major factors that led to Qatar beng placed in this group were, Qatar's strong oil- and gas-based economy, banking sector's high stability and the banks' strong efficiency and profitability, S&P said.
After the close, Alcoa reported a 59-percent rise in year-over-year earnings, pointing to strong efficiency gains and a slightly tighter supply market.
During his almost one-hour presentation, Moraleda emphasized that without strong efficiency measures and increased efforts to deploy renewable energy sources (RES), over the next two decades Mediterranean energy demand could increase by 40 percent, by a factor of 3, increasing the regional import dependence, taxing its emerging economy and exacerbating in the process the environmental concerns too.