|
|
Information Coefficient (IC) |
|
|
|
 Home Site Map Add Term Search About Us Contributors |
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.Information Coefficient (IC) Similar MatchesLimit order information systemLimit order information systemThe electronic system supplying information about securities traded on participating exchanges so that the best securities prices can be found. 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. Information servicesInformation servicesOrganizations that furnish investment and other types of information, such as information that helps a firm monitor its cash position. Informational efficiencyInformational efficiencyThe degree to which market prices correctly and quickly reflect information and thus the true value of an underlying asset. Asymmetric informationAsymmetric informationInformation that is known to some people but not to other people. Further SuggestionsExpected value of perfect informationInformational efficiency Information costs London Market Information Link Fundamental Information Insider information Intermarket Surveillance Information System (ISIS) Information architecture Incomplete information Information Agent price sensitive information Information content effect Information asymmetry Technical Information Complete information Nonpublic information Statement of Additional Information (SAI) For your information (FYI) Information Ratio insider information |
|
|
|