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Information asymmetry
(redirected from Information asymmetries)

   Also found in: Wikipedia 0.01 sec.
Information asymmetry
Condition that information is known to some, but not all, participants.


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However, we find that once one controls for the file price adjustment insurance IPOs, both stock and mutual, are no less underpriced than other noninsurance offerings suggesting the book-building process resolves any such information asymmetries.
Denis (2004) asserts that the problem of information asymmetries is even greater in entrepreneurial finance situations than in traditional corporate finance.
In particular, it has long been known that information asymmetries increase the costs of risk sharing.
 
 
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