LEMONS PROBLEM
The issue of an imbalance or asymmetry of information, between the buyer and seller of an investment or product. Economist George Akerlof popularized the term in his research paper in 1970. It derived from his demonstration of the concept of asymmetric information using the defective used cars as an example; these cars are known as lemons in the market. This problem is evident in fields such as insurance and corporate finance.
POPULAR TERMS
Financial Planner
An investment professional who helps people and corporations meet their long-term financial goals. A financial planner analyzes the status of his o ...
A-VIX
S&P / ASX 200 VIX (A-VIX) is a real-time index reflecting investor expectations in regard to volatility over the next 30 days in the S&P / ...
Web Syndication
Web Syndication refers to a marketing strategy employed by websites in which two or more Internet companies enter an agreement, which requires one ...
Registered Principal
Registered principal is a licensed securities professional who supervises a securities firm’s major operations, such as regulatory compliance ...
Credit Repair
Process of fixing an individual’s bad credit report, regardless of the reason it is deteriorated. It may involve correcting mistakes with the ...
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SEE FOREX TUTORIAL
A Guide to Income Tax: Overlooked Credits and Cuts
The US tax code changes from time to time, and majority of taxpayers cannot name at least three of the most common deductible expenditures. On that ...
Choosing Your Bank
Now that you’ve learned the basics of banking and the importance of it, you are now ready to put your money in a bank. But which bank should ...
The Types of Stock
Now that you’ve learned the basics of stocks, what it is, and how it works, we can now learn more about them. The next thing you need to know ...
Introduction to Banking
Banking is an integral part of any financial system. In order to keep your money safe and start building wealth, you need a place where your funds ...
Buying a Home: Getting Into the Escrow Process
You write an offer and the seller accepts it. Deal closed. It is about time to go through the escrow process. Why does a buyer need to undergo this ...
ECONOMIC CALENDAR
| Time | Country | Indices | Period |
|---|---|---|---|
| 22:50 | Gross Domestic Product | 2 quarter | |
| 03:30 | CPI | Aug | |
| 03:30 | PPI | Aug | |
| 07:00 | Economy Watchers Survey | Aug | |
| 10:30 | Sentix Investor Confidence | Sep | |
| 16:00 | Wholesale Inventories | Jul | |
| 21:00 | Consumer Credit | Jul | |
| 00:45 | Manufacturing Sales | 2 quarter | |
| 01:50 | M2 Money Supply + CD | Aug |
