Below mentioned hypothesis states about the information about
the company available to the investors.
There are three forms of EMH -
- Weak form of market - It means that prices of share already
reflect the publicy available information. Excess profit can only
be earned using the some fundamental anlaysis. Techincal analysis
can not be used to earn excess return.
- Sem-strong form of market - Share price get rapidly adjusted
with the publicy available new information moreover excess profit
can not be earned using techincal or fundamenta
anlaysis.
- Strong form of market - In this no one can earn execss return
from the market. Also the non-public information is also
incoporated in the share price.
Less information mean weaker form or market hypothesis and more
information make stronger EMH.