If a market has semi-strong efficiency, then all insider information is included in market prices.

Semi-Strong Efficiency

A form of market efficiency that asserts all public information is reflected in stock prices, making it impossible to gain abnormal returns.

Insider Information

Non-public information about a publicly-traded company that can provide a financial advantage in the stock market if acted upon.

Market Prices

The current prices at which goods, services, or financial instruments are bought and sold in a market.

Acquire an understanding of the foundational principles of the Efficient Market Hypothesis (EMH) and its forms (weak, semi-strong, strong).

Verified Answer

Final Answer :

False

Explanation :

In a semi-strong efficient market, all publicly available information is reflected in stock prices, but insider information is not included.

Learning Objectives

Acquire an understanding of the foundational principles of the Efficient Market Hypothesis (EMH) and its forms (weak, semi-strong, strong).