Mosaic theory

Mosaic theory,

Definition of Mosaic theory:

  1. There is an ongoing debate within the investment community as to whether this style of analysis misuses insider information, but the CFA Institute, formerly known as the Association for Investment Management and Research (AIMR), has recognized mosaic theory as a valid method of analysis.

  2. Legal: Theory used for classifying information within the legal system, based on belief that a group of unclassified data could be combined into a classified whole.

  3. Investing: Method recognized by the CFA Institute as a valid means of analysis of the value of a corporation, including both public and non-public data and through both material and non-material sources. Security analysts then make recommendations to their clients on whether or not the client should make a trade in the companys securities based on information gathered. Also called scuttlebutt method.

  4. The mosaic theory refers to a method of analysis used by security analysts to gather information about a corporation. The mosaic theory involves collecting public, non-public, and non-material information about a company to determine the underlying value of its securities and to enable the analyst to make recommendations to clients based on that information.

How to use Mosaic theory in a sentence?

  1. This wide range of information is used to help the analyst determine the company's stock value and whether the stock should be recommended to clients.
  2. The mosaic theory is a style of financial research in which the analyst uses a variety of resources to determine the value of a company, stock or other security.
  3. The mosaic theory necessitates that the analyst gathers public, non-public, and non-material information about a company.

Meaning of Mosaic theory & Mosaic theory Definition