What is true about the strong form of the efficient market hypothesis?
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.
Sources
- The web page with info on - Example Source - investopedia.com
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