semistrong form

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.

semistrong form

A component of the theory of efficient markets that holds that security prices adjust nearly instantaneously to publicly available information relevant to valuation of securities. If security markets are efficient in the semistrong form, investors cannot earn extraordinary returns by activities such as perusing financial reports, investigating financial ratios, or reading investment newsletters. See also weak form.
References in periodicals archive ?
Paul Boghossian (2006) considers three types of social construction: the strong form, the semistrong form, and the weak form.
Postmodernists cite as evidence for the semistrong form the fact that scientific "knowledge" is revised periodically.
According to Fama's study in 1970, there were three versions of market efficiency: weak form, semistrong form, and strong form.
One needs to bear in mind that the entire exercise of evaluating stock market response to strategic decisions by firms fundamentally assumes a strong or semistrong form of efficient market hypothesis.
This is defined as a semistrong form of rationality in which actors are assumed to be intendedly rational, but only limitedly so.
The information-effect or traditional semistrong form efficient markets hypothesis is related to the efficient market theory.
Thus the finding of significant cumulative abnormal returns to McDonnell Douglas would not be consistent with the semistrong form of efficient markets.