Efficient-market hypothesis is the theory describing the behavior of a market in which securities are typically in equilibrium,security prices fully reflect all public information available and react swiftly to new information,and,because stocks are fairly priced,investors need not waste time looking for mispriced securities.

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Efficient-market hypothesis suggests that security prices reflect all available information, and as a result, investors can't achieve profits by looking for mispriced securities. Thus, stock prices are generally always in line with their intrinsic values, and it's difficult for investors to find attractive opportunities in the market.

Efficient-Market Hypothesis Is the Theory Describing the Behavior of a Market