Efficient Market Hypothesis
/ɪˈfɪʃənt ˈmɑːrkɪt haɪˈpɒθəsɪs/
Definitions
- (n.) A financial theory stating that asset prices fully reflect all available information, making it impossible to consistently achieve higher returns than the overall market.
The court considered the efficient market hypothesis when evaluating allegations of insider trading affected the stock price.
Forms
- efficient market hypothesis
Related terms
See also
Commentary
Often cited in securities litigation to assess the impact of information disclosures on stock prices.
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