Information asymmetry
Technical analysisSome participants knowing more than others.
In plain terms
On a news day thousands are reading the same headline and almost nobody has read the filing.
1678 terms
Glossary
Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
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Ceiling price
Regulation & taxThe maximum price at which a scheduled formulation may be sold, computed by the National Pharmaceutical Pricing Authority as the simple average of the prices to retailer of brands above a 1% share of that formulation, plus a notified 16% retailer margin.
In plain terms
It is revised annually against the wholesale price index — an index with no connection to what the company paid for its active ingredient. That asymmetry is the whole structural feature of price control.
Onerous contract
AccountingAlso called: Loss-making contract
A contract whose unavoidable costs are expected to exceed the economic benefits from it.
In plain terms
The whole expected loss is recognised at once, whatever the stage of completion — while a favourable revision is recognised only in proportion to progress. The asymmetry is deliberate.
Single-stock risk
Risk & psychologyAlso called: Idiosyncratic risk
Risk arising from one company rather than from the market — one promoter, one auditor, one large customer.
In plain terms
The asymmetry that justifies different rules for stocks and indices: an index cannot go to zero and an individual stock can.