Investment Glossary · Quick read · No ads
Adverse Selection
A situation where one party in a transaction has more or better information than the other, leading to an imbalanced deal — common in insurance and lending markets.
What is Adverse Selection?
A situation where one party in a transaction has more or better information than the other, leading to an imbalanced deal — common in insurance and lending markets.
About this page. Written by Associate Professor Charles Lo, CPA, PhD. Checked against reliable sources before publication. No ads and no paywall. Editorial standards · How we fact check · Corrections log · Report an error
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