Explain capital Market efficiency theory
how would price react in Strong, Semi-strong and weak market?

Question

Abdullah Aziz Eldain Morsi Elgendy - CMA Candidate · Answer

theory in financial economics that states that an asset's prices fully reflects all available information. ... The weak form of the EMH claims that prices on traded assets (e.g., stocks, bonds, or property) already reflect all past publicly available information.

Soliman Abd ALmalak Gendy · Answer

Efficient capital market is a market where the share price reflect new information actually and in real time_Capital market efficiency is judged by uts success  in  incorporating snd inducting information, generally  about the basic  val securities , into the price of security.

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Abdulrasheed olabode · Answer

capital market efficiency theory simply explains how share prices react to information about a company.

In a strong market - company information about future plans are available and it affects the share prices. simply put, in a strong market, prices of shares react to historical information, publicly know information about the company and insider information.

In a semi strong capital market - prices only change based on the knowledge of historical and publicly known information about a company.

In a weak market - prices only react to historical information

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Explain capital Market efficiency theory how would price react in Strong, Semi-strong and weak market?

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