Is the efficient market hypothesis inefficient?

Market efficiency is the degree to which market prices reflect available information. In efficient markets, there is no way to "outperform" because all securities are fairly valued.

In 1970, economist Eugene Fama, coined the term. Investors who agree with the efficient market hypothesis, are often known as "Bogleheads" since they believe in passive index funds. Jack bogle founded Vanguard and pioneered indexed mutual funds.

There are three main degrees in market efficiency namely, (1) Weak (2) semi- strong (3) strong.

There are differing opinions on the efficiency market hypothesis. Those who don't believe in Fama's hypothesis, believe that active trading can generate huge profits.

However, to summarize, there is real world proof, that, when financial information is widely available, it does make markets more efficient. The Sarbanes Oxley Act of 2002 is a prominent example that stands tall amongst several.