What is true about the strong form of the efficient market hypothesis?

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Understand the Problem

The question is asking about the strong form of the efficient market hypothesis and what is true regarding this financial theory.

Answer

Insider trading is theoretically not possible.

The final answer is insider trading is theoretically not possible.

Answer for screen readers

The final answer is insider trading is theoretically not possible.

More Information

In the strong form of EMH, stock prices reflect all information, eliminating any potential advantage from insider information.

Tips

Common mistakes include confusing the strong form with weak or semi-strong forms, which do not account for all information.

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