Asymmetric information

Capital market imperfections

Capital market imperfections are limitations that reduce the range of financial contracts that can be signed or honored. These restrictions are more common in capital markets. There are three basic reasons for that: First, lenders do not have full information about the borrower, whether they have the capacity to pay back their debt and/or whether they are willing to pay (asymmetric information). Secondly, the lender needs to trust the borrower to commit and to pay back his/her debt or there needs to be a third party to enforce the contract as it is more difficult to enforce contracts ex post (limited commitment). Finally, since the exchange does not happen at the same time, there is always room for renegotiation. (Wikipedia).

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(The Lost Episodes) Perfectly Competitive Factor and Output Markets

The first of four cases for a firm operating in a factor market, this looks at a firm that competes with many other firms not only to sell its product, but to purchase its resources. "(THE LOST EPISODES) Perfectly Competitive Factor and Output Markets" by Dr. Mary J. McGlasson is licensed

From playlist Microeconomics modules

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Understanding Wealth Inequality

We've talked about public goods and externalities, and one negative externality associated with economic decisions is wealth inequality. A certain measure of wealth inequality is expected and desirable for any economy. But when this becomes extreme, as it is in the United States and many o

From playlist Economics

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Excel Finance Class 102: In The Short Run Financial Markets Can Be Inefficient Mispriced Assets

Download Excel File: https://people.highline.edu/mgirvin/YouTubeExcelIsFun/Busn233Ch10.xlsx Download PowerPoints: https://people.highline.edu/mgirvin/YouTubeExcelIsFun/Bsun233Ch10.pptx In the Short run financial markets can be inefficient. Markets Are Efficient Only In The Long Run - in

From playlist Excel Finance Free Course at YouTube. Cash Flow Analysis and Model Building (110 Videos).

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3 1 Model independent relations forwards, futures and swaps Part 1

BEM1105x Course Playlist - https://www.youtube.com/playlist?list=PL8_xPU5epJdfCxbRzxuchTfgOH1I2Ibht Produced in association with Caltech Academic Media Technologies. ©2020 California Institute of Technology

From playlist BEM1105x Course - Prof. Jakša Cvitanić

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Frank H. Knight and Risk, Uncertainty and Profit - Prof. Ross Emmett

Speaker Ross Emmett, Professor of Economic Thought, School of Civic and Economic Thought and Leadership, and Director, Center for the Study of Economic Liberty, Arizona State University Abstract Frank Knight’s Risk, Uncertainty and Profit was published in 1921, and has remained in publi

From playlist Uncertainty and Risk

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Where Have All The Stocks Gone?

The Private Capital Industry Soars Beyond $7 Trillion Over the past twenty years, the number of companies listed on the US stock market has almost halved. The world’s largest, most liquid public equity market would appear to have lost its shine. Institutional investors have been piling in

From playlist What is Happening In The Market?

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The SML is a general CML (informal FRM tip series)

A forum member asked me this great question; "If the CML plots well-diversified portfolios, and well-diversified portfolios have no idiosyncratic risk, then isn't the CML also a plot of systematic risk (aka, beta)? Put another way, doesn't the CML already map to the SML?" My response is he

From playlist FRM technical

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The Problem With Perfectionism

We aim for perfection without a correct idea of what perfection might demand from us. To strengthen our resolve, we need to improve our picture of what sacrifices any achievement will demand. If you like our films, take a look at our shop (we ship worldwide): https://goo.gl/p8kdj3 Join ou

From playlist SELF

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Acetock - Stock Prediction Tool for Amateur Investors | Workshop Capstone

Visit https://ai.science for more content like this, and to see the upcoming workshops! Investing in the stock market have many advantages such as potential for high return, staying ahead of inflation, high liquidity, no limitation of investment, and flexibility of portfolio. However, man

From playlist Community Projects

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Как работает рынок и что такое обмен – Сергей Гуриев

✦ Современная экономика России / Курс лекций экономиста Сергея Гуриева: https://www.youtube.com/playlist?list=PLy7FxfNoucMExd0QdKyDfly4EIRtYed-G Лекция 4/21 / Курс Сергея Гуриева "Дорога к рынку" "Цена любого вопроса": - Откуда берутся цены? 00:26 - Как рынок узнает правильную цену? 01

From playlist Business lectures

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13. Banking: Successes and Failures

Financial Markets (ECON 252) Banks, which were first created in primitive form by goldsmiths hundreds of years ago, have evolved into central economic institutions that manage the allocation of resources, channel information about productive activities, and offer the public convenient i

From playlist Financial Markets (2008) with Robert Shiller

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Capital market line (CML) versus security market line (SML), FRM T1-8

The CML contains ONLY efficient portfolios (and plots return against volatility; aka, total risk) while the SML plots any portfolio (and plots return against beta; aka, systematic risks) including inefficient portfolios. [here is my xls https://trtl.bz/2Fru70r] 💡 Discuss this video here i

From playlist Risk Foundations (FRM Topic 1)

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Capital asset pricing model (CAPM, FRM T1-9)

The CAPM is a ex ante single-factor model where the single-factor is the market's excess return: it says that we should expect an excess return that is proportional to the stock's beta, which is the stock's exposure to market's excess return, as measured by the stock's beta. Beta can be re

From playlist Risk Foundations (FRM Topic 1)

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How is Jurassic Park A Commentary on Capitalism? | Idea Channel | PBS Digital Studios

Viewers like you help make PBS (Thank you 😃) . Support your local PBS Member Station here: https://to.pbs.org/donateidea They spared no expense!! It doesn't matter if it was intended or not, the film Jurassic Park (and book it's based on) accurately illustrate investment and risk, money a

From playlist Newest Episodes

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Lecture 18: Land Markets (Part 3) / Public Finance (part 1)

MIT 14.771 Development Economics, Fall 2021 Instructor: Ben Olken View the complete course: https://ocw.mit.edu/courses/14-771-development-economics-fall-2021 YouTube Playlist: https://www.youtube.com/playlist?list=PLUl4u3cNGP61kvh3caDts2R6LmkYbmzaG Concludes discussion of land markets

From playlist MIT 14.771 Development Economics, Fall 2021

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George Soros - Reflexivity Explained

George Soros is the most famous Macro Hedge Fund Investor. His Theory of General Reflexivity in economics is the theory that a feedback loop exists in which investors' perceptions affect economic fundamentals, which in turn changes investor perception. The theory of reflexivity has its ro

From playlist What is Happening In The Market?

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Capitalism and Socialism: Crash Course World History #33

In which John Green teaches you about capitalism and socialism in a way that is sure to please commenters from both sides of the debate. Learn how capitalism arose from the industrial revolution, and then gave rise to socialism. Learn about how we got from the British East India Company to

From playlist World History

Related pages

Costly state verification | Rate of return | Expected return | Complete market | Incentive compatibility | Risk | Adverse selection | Information asymmetry | Moral hazard | Interest rate