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Efficient Market Theory Fama (1970) made a distinction between three forms of EMH:- 1. Strong form 2. Semi-strong form 3. Weak form. The strong form suggests that share prices reflect all available information, even private insider information, therefore believers of the strong efficient market theory believe that there is perfect information in the stock market. This theory thus states that everyone has the same information about a particular share or trading instrument, and that the price of a share should reflect the knowledge and expectations of every single investor i.e. an investor cannot beat the market since there is no way for him/her to know something about a share that isn't already reflected in the shares price. However, Nejat Seyhun (1986, 1992, 1998) provides sufficient evidence to discredit the strong form market, and protests in various studies that insiders profit from trading on information not already incorporated into prices, which is an illegal practice...

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