The semi-strong form of EMH suggests that all of what type of information is priced in?

The semi-strong form of the Efficient Market Hypothesis (EMH) posits that all publicly available information is reflected in stock prices. This includes not only historical prices and trading volumes but also all public financial statements, news articles, and economic indicators. The fundamental idea is that it is impossible to achieve consistently higher returns than the average market return on a risk-adjusted basis by using this information because the market has already incorporated it into the stock prices.

Since the semi-strong form suggests that the market reacts quickly and accurately to new public information, this theory implies that only private, or insider information, would have the potential to yield above-average returns. Consequently, relying on publicly available information would not provide a competitive advantage.

Understanding this foundational concept of the semi-strong form is crucial for investors and analysts, as it shapes the strategies they employ in investing, emphasizing the need to look for non-public information to find potential investment opportunities.