Semi Strong form of Efficiency of stock market: A Review of Literature

Investment in stock market is always fraught with heavy risk. The reason for this risk is “fluctuations in stock prices.” It is the forces of demand and supply which decides the price of any stock. And the demand and supply of any stock would be on the basis of information surrounding the stock. The concept of Efficient Market Hypothesis (EMH) deals with information discounting in stock market. EMH theory narrates that one cannot make any extra ordinary profit with any type (past- Weak form of Efficiency, public- Semi strong Form of Efficiency, insider- Strong form of Efficiency) of information because it is already discounted in the market. This study, which is qualitative in nature, intends to explain the movement of stock prices with respect to arrival of public information. Various research papers are written on publicly available information and stock market. The focus of this research paper is- reviewing the literature available on publicly available information and discounting of the same stock market (Semi strong form of Efficiency).