Semi-strong market efficiency implies that only public information that is available to all investors is reflected in a security's market price.

Question

Quizplus · Accepted Answer

Semi-strong market efficiency is one of the three levels of market efficiency proposed by Eugene Fama. It suggests that a security's market price reflects all publicly available information. This includes financial statements, economic news, industry trends, and other data that can be obtained through public sources. Therefore, any new information that becomes available to the public is quickly reflected in the security's price, making it difficult for investors to gain an advantage by analyzing public information.

Semi-Strong Market Efficiency Implies That Only Public Information That Is