Register now or log in to join your professional community.
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.
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
