TAKING THE SERIES 66 EXAM? KNOW THREE FORMS OF EFFICIENT MARKET THEORY

Don't sit for the Series 66 unprepared!

 One of the topics covered in the Series 66 Study Outline published by NASAA includes working knowledge of the Efficient Market Theory or Hypothesis (EMH).

 There are three forms of EMH—strong, semi-strong, and weak.

 If you are a strong believer in EMH, you believe that the securities markets absorb all possible information about a stock or company, even information that has not yet been released to the public!

 Semi-strong believers think that market prices incorporate all past information but also information from the instant that it is released to the public.

 Finally, believers in a weak form of EMH think that market prices reflect only information already released.

 Bob Eder J.D.'s book, Study for the Series 66 Exam, includes a treatment of the Efficient Market Theory in Chapter 8, explaining the three forms of EMH. Study for the Series 66 Exam is available from Amazon in either paperback or Kindle e-book versions. Here is a link to Bob Eder's book on Amazon.

 Here is a link to NASAA's Study Outline for the Series 66 exam. See Section III (C) for the Efficient Market Hypothesis.


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