Asymmetric information

 

Home
Site Map
Add Term
Search
About Us
Contributors

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

Information content effect

Information content effect

The rise in the stock price following a dividend signal, or publication of some other related news.


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.


Fundamental Information

Fundamental Information

Information relating to the economic state of a company or economy. In market analysis, fundamental information is related to the earnings prospects of the firm only.


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.


Insider information

Insider information

Price-sensitive information about a company that has not yet been made public.People who use the information either to make a profit for themselves or for someone else are committing a criminal offence (insider dealing).The inside dealer does not have to work for the company for his dealing to be an offence. So a stockbroker, or merchant banker, who knows about an impending takeover deal who buys shares in the target company with the intention of making a profit, is guilty. If he gets a friend to buy the shares, he is still guilty. In theory, the net is cast quite wide. In practice, insider dealing prosecutions are rare, and successful ones rarer still because the allegations are so hard to prove.Note the difference between insider dealing (an offence) and directors dealings (not an offence).


Further Suggestions

Information costs
Information Coefficient (IC)
Nonpublic information
For your information (FYI)
Technical Information
Complete information
Information asymmetry
Expected value of perfect information
Intermarket Surveillance Information System (ISIS)
Information services
London Market Information Link
price sensitive information
Insider information
Statement of Additional Information (SAI)
Information Agent
Incomplete information
Information architecture
Informational efficiency
Informational efficiency


 
All rights Reserved. Do not copy without permission.