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Capital formation |
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Capital formationExpansion of capital or capital goods through savings, which leads to economic growth.Capital formation Similar MatchesIncomplete informationIncomplete informationSee complete information. Asymmetric informationAsymmetric 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. Insider informationInsider informationPrice-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). 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. Informational efficiencyInformational efficiencyThe degree to which market prices correctly and quickly reflect information and thus the true value of an underlying asset. Further SuggestionsAsymmetric informationInformation costs Information architecture Information Coefficient (IC) Information services price sensitive information Limit order information system Intermarket Surveillance Information System (ISIS) V formation Insider information Information content effect Nonpublic information Statement of Additional Information (SAI) Transformation Expected value of perfect information London Market Information Link Marginal rate of transformation Information Agent Information Ratio Informational efficiency Fundamental Information Information asymmetry Complete information Technical Information Transformation curve |
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