Asymmetrical Distribution

  

Categories: Metrics, Stocks

Asymmetrical distribution means that the mean, median and mode values of the stock are occurring at irregular points. This shows abrupt and irregular increases and decreases. A normal distribution shows a bell curve, with the sides being even.

The reason the shape on the chart matters is that it indicates a lack of consistency or pattern, which may be the result of a new outside force affecting the market...or perhaps an issue with the stock itself. Basically, it suggests something unusual going on that requires further research.

Related or Semi-related Video

Finance: What is Asymmetric Information?25 Views

00:00

Finance allah shmoop what is asymmetric information Well asymmetry happens

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when two sides of something aren't equal think giant red

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wood and we'd regular crab and fiddler crab recumbent bike

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and a eunice cycle well in the financial world asymmetric

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information exists when one side of a transaction think inside

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trader scumbag who collects briefcases full of cash from somalia

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in overlords versus a normal joe six pack investor trying

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to fairly participate in the stock market So he has

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a pension to retire on while bouncing great grandchildren on

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his newly installed robotic knees Well discount needs don't go

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there Your summer college job is cleaning the house of

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the ceo of whatever dot com currently trading at eighteen

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bucks a share as you empty her garbage one night

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pushing away adult diapers in the process Yes she has

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a lot of pressure on the job on this conference

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calls and saying ooh a lot I push that away

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You realize that microsoft is buying her company for thirty

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dollars a share You then by a ton of stock

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at eighteen bucks you had a symmetric information because you

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dug through the trash and you found the memo from

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whoever the ceo is of microsoft these days to her

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and that was bad You didn't have to act on

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that information like you could have just done a whole

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lot of nothing and not repeated it to anyone and

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left the stock at eighteen dollars until it was all

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in the news at thirty and moved on and still

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have your job cleaning her trash Having inside information isn't

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illegal but doing something to benefit yourself tor You know

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your loved ones is illegal So if you trade based

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on inside asymmetric information well then you just committed a

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felony It's called insider trading And while here's hoping you

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look good and either orange or black or or both

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