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Chris
Chris
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It depends on which form of EMH you're considering as to provide a rationale.

Strong-form EMH could or would assert there's private information potentially changing hands that agents are acting on to cause the price movement.

Semi-strong form EMH would suggest all available public info (eg, the news you reference WRT IBM) is immediately incorporated into share price, nullifying any ability to extract a profit. The reality, as the other useuser noted in his/her response, is that this information is often incorporated imperfectly in practice, whether that be at a lag or in an overeaction at its release.

It depends on which form of EMH you're considering as to provide a rationale.

Strong-form EMH could or would assert there's private information potentially changing hands that agents are acting on to cause the price movement.

Semi-strong form EMH would suggest all available public info (eg, the news you reference WRT IBM) is immediately incorporated into share price, nullifying any ability to extract a profit. The reality, as the other use noted in his/her response, is that this information is often incorporated imperfectly in practice, whether that be at a lag or in an overeaction at its release.

It depends on which form of EMH you're considering as to provide a rationale.

Strong-form EMH could or would assert there's private information potentially changing hands that agents are acting on to cause the price movement.

Semi-strong form EMH would suggest all available public info (eg, the news you reference WRT IBM) is immediately incorporated into share price, nullifying any ability to extract a profit. The reality, as the other user noted in his/her response, is that this information is often incorporated imperfectly in practice, whether that be at a lag or in an overeaction at its release.

Source Link
Chris
Chris
  • 1.7k
  • 5
  • 14

It depends on which form of EMH you're considering as to provide a rationale.

Strong-form EMH could or would assert there's private information potentially changing hands that agents are acting on to cause the price movement.

Semi-strong form EMH would suggest all available public info (eg, the news you reference WRT IBM) is immediately incorporated into share price, nullifying any ability to extract a profit. The reality, as the other use noted in his/her response, is that this information is often incorporated imperfectly in practice, whether that be at a lag or in an overeaction at its release.