weak form

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.

weak form

A component in the theory of efficient markets that holds that successive changes in security prices are independent of one another. If security markets are efficient to the extent of the weak form, existing prices reflect all the information contained in historical market data. Therefore, the charting of security prices and volume is not useful in projecting future price movements. The weak form of efficient markets supports the random-walk hypothesis. Compare strong form.
References in periodicals archive ?
In such a context, appeal to the authority of contested "facts" is a weak form of argument, easily dismissed as grounded in bias.
I just think that," then it's such a weak form of prediction that it's really just a guess, like my guessing that the next throw of the dice will be a four.
This paper presents the results of tests on the weak form of Efficient Market Hypothesis applied to carbon efficient stock market indices of India, the United States of America (USA), Japan, and Brazil and their corresponding market indices which are used as their benchmark indices.
This research is an empirical investigation of the weak form of efficiency of the Karachi Stock Exchange (KSE-100) Index, which is the prominent index of Pakistan Stock Exchange (formerly Karachi Stock Exchange).
The author demonstrates how later developments in formal epistemology, philosophy of science, and logic can contribute to solving some of the problems of verificationism in philosophy, arguing for a weak form of verificationism called minimal verificationism.
Stock markets continued their recent run of weak form all the way towards the end of last week with financial markets concluding trading once again by staring at steep and heavy losses.
For instance, Chun (2000) based on variance ratio tests found that the Hungarian capital market was weakly efficient; Gilmore and McManus (2003) investigated informational efficiency in its weak form from the Czech Republic, Poland and Hungary (within 1995-2000) and rejected the random walk hypothesis based on the results of a model comparison approach.
Like strong form market discipline, weak form discipline is based on the assumption that interested bank investors do provide an important monitoring function, and that this monitoring is inhibited by the moral hazard problems associated with federal deposit insurance provided to traditional banks.
By the virtue of weak form of efficiency, no one can project future prices by examining only previous years prices.
Further, the weak form of UIP is tested in all cointegrating vectors by H17 and in first cointegrating vectors through His with zero restriction on the coefficient of prices and output.
In the weak form of the homology thesis, the space of positions and the spaces to which it is homologous are not configured in as complicated a manner.