Asymmetric Information


Definition: Asymmetric Information is a phenomon in economic, legal and corporate science dealing with communication and decision making where one party has more or better information than the other. Because of that there is an inbalance of power in making transactions.
Information assymetry plays a major role in agency problems and in moral hazard situations such as equity trading and alike.


More on financial markets: Call Option, Moral Hazard.


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