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Strong form efficient

This topic has 1 reply, 2 voices, and was last updated 7 years ago by John Moffat.

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May 2, 2018 at 3:16 pm #449818
humai
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Sir there is a statement that existence of information content in dividends contradicts the idea that stock market is strong form efficient. Sir can you please explain me this?
May 3, 2018 at 6:14 am #449887
John Moffat
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If it was strong form efficient then shareholders would already know the information before the dividend was paid – the dividend would not give them any more information.
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