information that differs between parties to transactiona situation in which consumers, suppliers, and producers do not all have the same information on which to base their decisions
Recommended Further Reading (Term count)
US Financial Regulation: A Hopeless Tangle, or Complexity for a Purpose? by Lawrence J. White The US system of financial regulation has received heightened scrutiny recently, because of the financial debacle of 2007–2009. No observer can come away from that scrutiny without being overwhelmed by the complexity of financial regulation in the United States. Many are convinced that this system’s complexity is somehow responsible, at least in part, for the debacle; and, in any event, they would argue that the system must be reformed and...
The Cost of Going Public: Why IPOs Are Typically Underpriced by Lena Booth When firms go public, they incur direct and indirect costs associated with the initial public offering (IPO) process. Direct costs are fairly predictable—they include registration, underwriting, and attorney and auditing fees. The indirect cost, commonly known as IPO underpricing, is one of the most perplexing puzzles in finance. It is observed in almost every financial market in the world and across all procedures of share allocation. IPOs are,...
The Global Financial System: A Functional Perspective Dwight B. Crane, Kenneth A. Froot, Scott P. Mason, André F. Perold, Robert C. Merton, Zvi Bodie, Erik R. Sirri, and Peter Tufano (1995) A collection of eight essays written by top finance academics and thinkers at Harvard Business School.
Places a focus on how the performance of the financial system is evolving, and the implications this has for the future.
Examines how each of the main functions of the financial system meets a basic organizational need.