Series 66: Semi-Strong Form Efficient Market Hypothesis

Semi-Strong Form Efficient Market Hypothesis

The semi-strong form posits that private information about a security is not immediately reflected in a security’s price, but that public information is wholly and immediately reflected. Thus, the only way to beat the market in the long run is with insider information, so a retail investor is better off investing in a low cost index fund or broad based ETF than relying on active management.