Indian Journal of Finance

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A Study of Efficiency of the Indian Stock Market


Affiliations
1 Professor, Department of Business Administration, P.A. College of Engineering, Mangalore, Karnataka, India
2 Professor, Department of Business Administration, Mangalore University, Mangalore, India

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Market efficiency is examined in three forms: weak form, semi-strong form and strong form and each one deals with a different source of information. 1. Weak form efficient market - the prices of securities fully reflect all historical information and no excess returns can be earned by utilising historical share prices. 2. Semi-strong form - securities prices adjust instantaneously to available new information such as earnings announcements, bonus issue, merger and acquisition, etc. so that no excess returns can be earned by trading on that information. 3. Strong form efficient market - securities prices fully reflect all information, including inside or private information.
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  • A Study of Efficiency of the Indian Stock Market

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Authors

Iqbal
Professor, Department of Business Administration, P.A. College of Engineering, Mangalore, Karnataka, India
Dr. T. Mallikarjunappa
Professor, Department of Business Administration, Mangalore University, Mangalore, India

Abstract


Market efficiency is examined in three forms: weak form, semi-strong form and strong form and each one deals with a different source of information. 1. Weak form efficient market - the prices of securities fully reflect all historical information and no excess returns can be earned by utilising historical share prices. 2. Semi-strong form - securities prices adjust instantaneously to available new information such as earnings announcements, bonus issue, merger and acquisition, etc. so that no excess returns can be earned by trading on that information. 3. Strong form efficient market - securities prices fully reflect all information, including inside or private information.