Also found in: Dictionary, Thesaurus, Medical, Encyclopedia.
Related to Endogenous uncertainty: Exogenous Uncertainty
Describes factors within the control of the firm, such as a decision to reveal information about price or input costs. Converse of exogenous.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
Uncertainty regarding a firm's state, or a financial situation that could be resolved if the firm would simply announce it. For example, speculative investing may increase prior to the release of an earnings statement, driving the stock price up or down because of the endogenous uncertainty stemming from the fact that the company has not yet released the statement. In other words, endogenous uncertainty is under the control of the company it regards. See also: Exogenous uncertainty.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved