Characteristics Of Semi Strong Effective Market

1447 WordsApr 23, 20176 Pages
If a capital market fully and accurately reflects all relevant information when determining the price of the securities, the market is effective and the three characteristics of the effective capital market are efficient operation, efficient price, and efficient distribution(Sascha Kurth,2013). There are three forms of efficiency market, this article will analyze the characteristics of semi-strong effective market and the impact of the abnormal Book-Market-value effect on the effective market hypothesis so that investors should be dialectical view of the market hypothesis and the emergence of abnormal to make the stable investment activities. The semi-strong effective market hypothesis that the price has fully reflected all the published…show more content…
The issuer of the securities does not have all the relevant securities Of the information is complete, true and timely disclosure, issuers and investors in the possession of information in an unequal position. Investors get only the information released by the issuer, rather than the issuer 's own information, those who are not disclosed the real information is called insider information. Moreover, for various reasons, there may be false elements in the information disclosed by the issuer. On the other hand, all investors have the same public information. In other words, in addition to the undisclosed insider information, as long as it is public information, it can be occupied by every investor, no matter what type of investor, its judgment on all public information is consistent. As a result, all the public information on the market can be correctly interpreted by investors, and through the investors ' trading decisions and behavior caused by changes in market prices. In the semi-strong effective securities market, there are two types of information: public information and insider information. Very few people hold insider information and most people can only get public information. If the person holding the "insider information" can not participate in the transaction, all those who can participate in the transaction can only be based on public information to invest, then the
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