In the parlance of economists, such a case is known as an information asymmetry.
The market environment at the time was not inconsistent with an increase in counterparty risk and a higher degree of information asymmetry.
Kennedy took an information asymmetry and dumped it on its head.
It is fairly easy for a top executive to reduce the price of his/her company's stock - due to information asymmetry.
In this sense, labels also help correct information asymmetries that often exist within many market transactions.
When information asymmetry is pertinent, a situation known as a may occur.
Some go further and say that there is a problem of information asymmetry with incentives to misrepresent.
Therefore, the information asymmetry played a very important role in international investments.
To some extent it exists for all contracts that are written in a world of information asymmetry, uncertainty and risk.
We see two main types of information asymmetries in capital markets: