efficient market hypothesis

noun

The idea that the prices generated by a financial market represent the best possible estimate of any investment’s value.

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Meanings

nounefficient market hypothesis (uncountable)

alternative efficient markets hypothesis

  1. uncountableeconomicsThe idea that the prices generated by a financial market represent the best possible estimate of any investment’s value.
Cite this entry
APA

efficient market hypothesis. (n.d.). In WatkinsX Dictionary. Retrieved November 4, 2026, from https://dictionary.watkinsx.com/word/efficient%20market%20hypothesis

MLA

“efficient market hypothesis.” WatkinsX Dictionary, https://dictionary.watkinsx.com/word/efficient%20market%20hypothesis. Accessed November 4, 2026.

Chicago

WatkinsX Dictionary, s.v. “efficient market hypothesis,” accessed November 4, 2026, https://dictionary.watkinsx.com/word/efficient%20market%20hypothesis.

Source: efficient market hypothesis on Wiktionary, CC BY-SA 4.0.