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The Value of Risk-Reducing Information

Published online by Cambridge University Press:  19 October 2009

Jeffrey F. Jaffe  and
Larry J. Merville
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Extract

It has been suggested that information has the three following uses:

1. Information can be employed to earn trading profits.

2. Information can improve the operating decisions of a firm or group of firms and thereby increase the stock price.

3. Information can reduce the risk of a firm or group of firms and thereby increase the stock price.

Type
Las Vegas Versus the Stock Market
Information
Journal of Financial and Quantitative Analysis , Volume 9 , Issue 5 , November 1974 , pp. 697 - 707
Copyright
Copyright © School of Business Administration, University of Washington 1974

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References

REFERENCES

[1]Alchian, Armen. “Information Costs, Pricing, and Resource Unemployment.” Edited by Phelps, E.S. et al. In Microeconomic Foundations of Employment and Inflation Theory, New York, 1970.Google Scholar
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