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Asymmetric information |
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Asymmetric informationThe failure of two parties to a transaction to have the same relevant information. Examples are buyers who know less about product quality than sellers, and lenders who know less about likely default than borrowers. Both are common in international markets.Asymmetric informationInformation that is known to some people but not to other people.Asymmetric information Similar MatchesInformation costsInformation costsTransactions costs that include the assessment of the investment merits of a financial asset. Related: Search costs. Information Coefficient (IC)Information Coefficient (IC)The correlation between predicted and actual stock returns, sometimes used to measure the contribution of a financial analyst. An IC of 1.0 indicates a perfect linear relationship between predicted and actual returns, while an IC of 0.0 indicates no linear relationship. Information RatioInformation RatioThe ratio of annualized expected residual return to residual risk. A central measurement for active management, value added is proportional to the square of the information ratio. Insider informationInsider informationMaterial information about a company that has not yet been made public. It is illegal for holders of this information to make trades based on it, however received. Statement of Additional Information (SAI)Statement of Additional Information (SAI)A document provided as a supplement to a mutual fund prospectus. It provides more detailed information about fund policies, operations, and risks. Also known as a Part B prospectus. Further SuggestionsExpected value of perfect informationIntermarket Surveillance Information System (ISIS) Technical Information Incomplete information Informational efficiency For your information (FYI) Informational efficiency Information Agent Information architecture Information services Fundamental Information Information content effect price sensitive information Limit order information system London Market Information Link insider information Complete information Nonpublic information Information asymmetry |
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