In: Finance
Is the Efficient Market Hypothesis wrong if someone with inside (confidential) information is able to make a profit on trades?
Efficient Market Hypothesis: Definition and types in the notes.
Efficient Market Hypothesis fails if some one makes a profit out
of insider information because as EMH the insider information
should be useless and already taken into consideration.
Although strong Efficient Market doesn't exits in real life.
They are 3 types of market in Efficient Market Hypothesis:
Strong: Insider Information, fundamental and technical analysis
useless.
Semi- Strong Markets: fundamental and technical analysis
useless.
Weak: technical analysis useless in the market.