| Author: | Fishman, M. Hagerty, K. |
| Title: | The incentive to sell financial market information |
| Journal: | Journal of Financial Intermediation
1995 : APR, VOL. 4:2, p. 95-115 |
| Index terms: | FINANCIAL MARKETS MARKET INFORMATION SELLING |
| Language: | eng |
| Abstract: | Investment advisory firms and brokerage firms hire analysts to uncover profitable securities investment opportunities. Then these firms sell the information to others. Why? Given that the information has value, why do these firms not keep the information to themselves and trade solely for their own accounts? Because of competition, information is more valuable when fewer people trade on the information. This paper shows that selling information is a strategic response by competing informed traders. |
SCIMA