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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 servicesInformation servicesOrganizations that furnish investment and other types of information, such as information that helps a firm monitor its cash position. 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. Informational efficiencyInformational efficiencyThe speed and accuracy with which prices reflect new information. Informational efficiencyInformational efficiencyThe degree to which market prices correctly and quickly reflect information and thus the true value of an underlying asset. 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. Further SuggestionsFor your information (FYI)Insider information London Market Information Link Limit order information system Statement of Additional Information (SAI) Intermarket Surveillance Information System (ISIS) Expected value of perfect information Nonpublic information Incomplete information insider information Information asymmetry Information Agent Information costs price sensitive information Technical Information Information content effect Complete information Fundamental Information Information architecture |
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