Information Asymmetry

The gap between what different market participants know about the same security or company. In Public Markets, sell-side analysts exist in part to reduce this gap: distributing company information systematically, helping buy-side investors triangulate “buy-side consensus” (which is not publicly reported). A key insight from equity research: stocks often move not relative to sell-side consensus but relative to buy-side consensus — meaning the relevant asymmetry is between an investor’s estimate and what the aggregate buy-side already expects, not what Bloomberg publishes.

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