Meaning SIGNALING APPROACH: Notion that insiders in a firm have information that the market does not have, and that the choice of capital structure by insiders can signal information to outsiders and change the value of the firm. This theory is also called the asymmetric information approach
More terms such as Signaling approach in Dictionary S.
- Definition Salary Freeze:
- Examples A temporary halt to increases in salary due to financial difficulties experienced by a company signaling approach definition.
- Definition Small Issues Exemption:
- Examples that involve less than $1.5 million are not required to file a registration statement with the SEC. Instead, they are governed by Regulation A, for which only a brief offering statement is needed signaling approach explain.
- Definition Sharpe Benchmark:
- Examples A statistically created benchmark that adjusts for a manager's index-like tendencies. Named after William Sharpe, Nobel Laureate, and developer of the capital asset pricing model signaling approach what is.
- Definition Securities Analysts:
- Examples Related: Financial analysts signaling approach meaning.
- Definition Speculative-Grade Bond:
- Examples Bond rated BA or lower by Moody's, or BB or lower by S;P, or an unrated bond signaling approach abbreviation.
