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Information Ratio |
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Information RatioThe 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.Information Ratio Similar MatchesInsider 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). Limit 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. Incomplete informationIncomplete informationSee complete information. London Market Information LinkLondon Market Information LinkThe London Stock Exchange's main source of UK financial data for market professionals and information vendors. Further SuggestionsInformation asymmetryprice sensitive information Information services Asymmetric information Technical Information Intermarket Surveillance Information System (ISIS) Insider information Information Agent Informational efficiency Information content effect Information costs Informational efficiency Information Coefficient (IC) Nonpublic information Statement of Additional Information (SAI) Information architecture For your information (FYI) Complete information Fundamental Information Expected value of perfect information |
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