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

Stock selection

Stock selection

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


Security selection decision

Security selection decision

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


Currency selection

Currency selection

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


Self selection

Self selection

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


Country selection

Country selection

A type of active international management that measures the contribution to performance attributable to investing in the better-performing stock markets of the world.


Further Suggestions

Security selection


 
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