Analysis of the practical use of information asymmetry in financial markets

Abstract

This article discusses the issue of minimizing the negative consequences in different types of financial markets caused by such a phenomenon as information asymmetry. This problem is generated by the market participants themselves and can manifest itself in two directions, which are described in more detail in the article. The most common problems caused by information asymmetry, according to the author, are "bad choice" and "moral hazard". The author argues that the most optimal way to minimize negative consequences is state regulation, legislative consolidation of completely new forms of reporting to potential investors, tracking and suppressing fraud in this matter. The article pays special attention to the analysis of foreign experience in the field of resolving problems caused by information asymmetry, since some of them have made a significant contribution to reducing the imperfection of information in financial markets. The author cites as an example the creation of such companies as, for example, Fitch, Standard and Poor's, Moody's, the purpose of which is to study the financial market to identify reliable organizations. However, according to the author, the creation of financial intermediaries has become the most effective method of reducing information asymmetry in international practice. The essence of this method is described in detail in the article. An equally effective method is such a market mechanism as signals, which was developed by M. Spence. In the final part of the article, the author analyzes the problems arising in connection with the asymmetry of information in Russia, and also formulates conclusions regarding the role of the considered methods in ensuring the efficient operation of markets.