Financial Education

The strong-form efficient market hypothesis assumes that stock prices reflect all information, whether public or private. As such, it encompasses both the weak-form EMH and the semistrong-form EMH. If a market is strong form efficient, it is also weak- and semistrong-form efficient.

In a strong-form efficient market no group of investors should be able to generate excess risk-adjusted returns. Technical analysis, fundamental analysis, and even inside information will provide little value once the information is known.

In essence, the strong form efficient market assumes a perfect market in which all information is cost-free and universally available to all market participants simultaneously.

For more information, see all articles on: Active Management, Fundamental Analysis, Investing in Stocks, Investment Returns, Portfolio Management, Technical Analysis

See also:

Efficient Market Hypothesis: Semi-Strong Form

Efficient Market Hypothesis: Weak Form

Are Markets Strong Form Efficient?

Are Markets Weak-Form Efficient?

Are Markets Semistrong Form Efficient?