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

Complete information

Complete information

The assumption that economic agents (buyers and sellers, consumers and firms) know everything that they need to know in order to make optimal decisions. Types of incomplete information are uncertainty and asymmetric information.


Information content effect

Information content effect

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


Insider information

Insider information

Material 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.


For your information (FYI)

For your information (FYI)

A prefix to a security price indicating that the quote is for information purposes only, and not an offer to trade.


Expected value of perfect information

Expected value of perfect information

The expected value if the future uncertain outcomes could be known minus the expected value with no additional information.


Further Suggestions

Technical Information
Information costs
Information architecture
Informational efficiency
Fundamental Information
Informational efficiency
price sensitive information
London Market Information Link
Statement of Additional Information (SAI)
Information asymmetry
Information Ratio
Information Coefficient (IC)
Nonpublic information
Information Agent
Intermarket Surveillance Information System (ISIS)
Incomplete information
insider information
Limit order information system
Information services


 
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