Adverse selection


 

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Adverse selection

The tendency for insurance to be purchased only by those who are most likely to need it, thus raising its cost and reducing its benefits.

Adverse selection

Refers to a situation in which sellers have relevant information that buyers lack (or vice versa) about some aspect of product quality.



Adverse selection

Similar Matches

Security selection decision

Security selection decision

Choosing the particular stocks or bonds or other investment instruments to include in a portfolio.


Stock selection

Stock selection

An active portfolio management technique that focuses on advantageous selection of particular stock rather than on broad asset allocation choices.


Self selection

Self selection

Consequence of a contract that induces only one group to participate.


Security selection

Security selection

See: Security selection decision


Currency selection

Currency selection

Asset allocation in which the investor chooses among investments denominated in different currencies.


Further Suggestions

Country selection


 
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