Weak form of market efficiency
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Weak form of market efficiency is a strategy that assumes that all information contained in past price movements is fully reflected in current market prices. Thus, information about recent trends in a stock's price is of no use in selecting a stock.
Definitions
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Weak form of market efficiency. Assumes that all information contained in past price movements is fully reflected in current market prices. Thus, information about recent trends in a stock's price is of no use in selecting a stock.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
