|
|
Information asymmetry |
|
|
|
 Home Site Map Add Term Search About Us Contributors |
Information asymmetryCondition that information is known to some, but not all, participants.Information asymmetry Similar MatchesInformation architectureInformation architectureThe flow of pages and data on a website. The intentional design, structure and organization of a website so as to provide information efficiently. Information costsInformation costsTransactions costs that include the assessment of the investment merits of a financial asset. Related: Search costs. Fundamental InformationFundamental InformationInformation 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. 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). 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. Further SuggestionsExpected value of perfect informationTechnical Information Information services Information Ratio Informational efficiency For your information (FYI) Statement of Additional Information (SAI) Informational efficiency price sensitive information London Market Information Link Asymmetric information Complete information Limit order information system Information content effect Incomplete information Nonpublic information Information Coefficient (IC) Intermarket Surveillance Information System (ISIS) Insider information Information Agent |
|
|
|