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Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Asymmetric Information

Definition:

Asymmetry happens when two sides of something aren't equal. Think: fiddler crabs.

In the financial world, asymmetrical information exists when one side of a transaction has more information about stocks, bonds, or securities, than another.

Example

Insiders may get some information about their company and then sell or trade stocks before other shareholders get wind of the same info.

It's illegal. Do not do it. We love Orange is the New Black, too, but no one looks good in prison colors.