Weak-form efficiency

A pricing theory that the price of a security reflects the past price and trading history of the security. Theory implies that security prices follow a random walk. Related: Semistrong-form efficiency, strong-form efficiency.

Weak Form Efficiency

A version of the efficient markets theory on how markets work. It holds that the market efficiently deals with most information on a given security and reflects it in the price immediately. Specifically, weak form efficiency states that technical analysis is ineffective and that prices are on a random walk. Investors and academics disagree on how well the model works, but it is less controversial than the semi-strong form of the EMT and the strong form of the EMT.

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References in periodicals archive ?

According to the weak-form efficiency current foreign exchange rates reflect information available in past exchange rates.

Efficiency of foreign exchange market of Sri Lanka: some empirical evidence

Weak-form efficiency in the Nigerian Stock Exchange.

Weak Form of Efficient Market Hypothesis--Evidence from Pakistan

In order to test the weak-form efficiency of the Romanian capital market and different aspects regarding the behavior of financial assets, we have used daily closing prices for the BET Index, for the period starting from the 22th of September, 1997, and ending to the 10th of July, 2015.

Romanian capital market: Random walk or weak form of inefficiency?

Emerging markets also exhibited weak-form efficiency.

Stock market behavior: a fractal analysis of Saudi Stock Exchange

This is a condition required for a set of survey expectational series to meet the term of weak-form efficiency.

Testing rational expectations hypothesis in the manufacturing sector in Malaysia

Analysis of Weak-Form Efficiency on the Nigerian Stock Market: Further Evidence from GARCH Model.

Are Indian and US stock markets efficient and integrated

Weak-form efficiency occurs when past stock prices cannot be used to predict future stock prices (Magnusson and Wydick, 2002).

Weak-form market inefficiency and fraudulent financial reporting

Weak-Form Efficiency when prices reflect all information contained in past trading,

Efficiency of the Warsaw Stock Exchange: analysis of selected properties

Pakistan's equity market being an emerging market, it seems appropriate to test for weak-form efficiency.

Stock market volatility and weak-form efficiency: evidence from an emerging market

Weak-form efficiency uses the information in past stock prices to form portfolios of the assets.

9 A summary: the evidence on managed portfolio performance and market efficiency

However, the fact that one recognizes the existence of a pattern in the NYSE large-firm portfolio raises questions about the weak-form efficiency of this market.

Using nonlinear dynamics to test for market efficiency among the major U.S. stock exchanges

This paper provides a summary of results from tests of weak-form efficiency and a partial-equilibrium model to identify the determinants of black market exchange rates.