Ex-Ante

AAA

DEFINITION of 'Ex-Ante'

A term that refers to future events, such as future returns or prospects of a company. Using ex-ante analysis helps to give an idea of future movements in price or the future impact of a newly implemented policy.

INVESTOPEDIA EXPLAINS 'Ex-Ante'

An example of ex-ante analysis is when an investment company values a stock ex-ante and then compares the predicted results to the actual movement of the stock's price.

In Latin it means "before the event".

RELATED TERMS
  1. Analyst

    A financial professional who has expertise in evaluating investments ...
  2. Barometer

    A compilation of market and economic data that represents a general ...
  3. Ex-Post

    Another term for actual returns. Ex-post translated from Latin ...
  4. Forecasting

    The use of historic data to determine the direction of future ...
  5. Earnings Estimate

    An analyst's estimate for a company's future quarterly or annual ...
  6. Econometrics

    The application of statistical and mathematical theories to economics ...
Related Articles
  1. Great Expectations: Forecasting Sales ...
    Fundamental Analysis

    Great Expectations: Forecasting Sales ...

  2. Earnings Guidance: Can It Accurately ...
    Economics

    Earnings Guidance: Can It Accurately ...

  3. Moral Hazards: A Bump In The Contract ...
    Options & Futures

    Moral Hazards: A Bump In The Contract ...

  4. Playing Penny Stock-Like ETFs
    Stock Analysis

    Playing Penny Stock-Like ETFs

comments powered by Disqus
Hot Definitions
  1. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  2. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  3. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  4. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
  5. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
  6. Limit-On-Open Order - LOO

    A type of limit order to buy or sell shares at the market open if the market price meets the limit condition. This type of ...
Trading Center