Financial glossary

Efficient-market hypothesis (EMH)

The efficient-market hypothesis asserts that information is efficiently reflected in asset prices. Three forms of efficiency are identified:

• Strong form: in its strong form, all information (including private information) is integrated intothe prices.
• Semi-strong form: in this form, all public information is integrated into the price.
• Weak form: in the weak form, past prices do not reveal any information on future prices.

Emerging markets

A nation’s economy that is progressing toward becoming advanced, as shown by some liquidity in local debt and equity markets and the existence of some form of market exchange and regulatory body

Equities/stocks/shares

A stock or any other security representing an ownership interest

Exchange traded fund (ETF)

Exchange traded funds (ETFs) are funds traded on the stock exchange. ETFs can invest in stocks, bonds or commodities. They generally track market indices (such as the MSCI) and are quoted intraday, close to their theoretical net asset values. ETFs offer investors access to diversified and passive liquid portfolios at low cost.