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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 ...


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You‘re right. The "true price" should only jump when news arrives but in practice, market participants need time to arrive at a new equilibrium, i.e. the market needs some time until it is clear how the news affects the price. Therefore, you see more adjustments taking place and more trading after arriving news. The description above gives some reasoning ...


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