Three forms of capital market efficiency:
• Weak form
In this form of efficiency, the security prices will reflect past information regarding the company. The market price of the shares will be based on past performance.
• Semi-strong form
In this form of efficiency, the security prices will reflect both past information and publicly available information. Publicly available information may be information made available through financial statements.
• Strong form
The security prices will reflect all relevant information. In a company this implies that there would not exist overvalued or undervalued securities.