Which form of the Efficient Market Hypothesis argues that prices reflect all publicly available information?

• A. Semi-strong form
• B. Weak form
• C. Strong form
• D. Moderate form

Answer: (A)

Prices reflect all publicly available information is the semi-strong form. In this view, not only past price history but also earnings announcements, financial statements, macro news, and other public disclosures are instantly priced in. That means when new public information hits the market, prices adjust quickly to reflect it, leaving little opportunity to earn abnormal returns by trading on that information alone. This contrasts with the weak form, which says only past prices and volume are reflected, leaving open the possibility of profits from public information beyond price history, and with the strong form, which would include private insider information as well. So the statement describes the semi-strong form, where public information is already incorporated into prices.