Conveying intelligence through a firm's actions. A firm's dividend policy, for example, provides signals to investors concerning the value of the firm's stock.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
Hints as to a company's financial state and/or goals given through its actions. For example, a new issue of bonds may be an indication of plans for future expansion of operations and may affect the stock price.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved