Asymmetric information

 

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Asymmetric information

The 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 information

Information that is known to some people but not to other people.



Asymmetric information

Similar Matches

Limit order information system

Limit order information system

The electronic system supplying information about securities traded on participating exchanges so that the best securities prices can be found.


Technical Information

Technical Information

Information related to the momentum of a particular variable. In market analysis, technical information is information related to market dynamics and crowd behavior only.


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.


Information Ratio

Information Ratio

The 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.


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 Suggestions

Informational efficiency
Information services
Informational efficiency
For your information (FYI)
price sensitive information
Complete information
Intermarket Surveillance Information System (ISIS)
Incomplete information
Information costs
Information asymmetry
London Market Information Link
Nonpublic information
insider information
Information Agent
Fundamental Information
Information content effect
Insider information
Expected value of perfect information
Information architecture


 
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