The efficient market hypothesis states that when financial markets are in equilibrium

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The efficient market hypothesis (EMH) states that financial markets are efficient and that the prices of financial instruments reflect all readily available information. This means that in equilibrium, all public information is reflected in the prices of financial assets, and there is no way to earn abnormal returns using that information. The EMH has three forms: weak, semi-strong, and strong, each of which reflects a different degree of information efficiency. The most widely accepted form of the EMH is the semi-strong form, which implies that all publicly available information, including financial statements, news releases, and historical prices, are reflected in the prices of financial assets, and it is impossible to earn excess returns by analyzing that information.

The Efficient Market Hypothesis States That When Financial Markets Are