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. Earnings Estimate

    An analyst's estimate for a company's future quarterly or annual ...
  2. Barometer

    A compilation of market and economic data that represents a general ...
  3. Forecasting

    The use of historic data to determine the direction of future ...
  4. Analyst

    A financial professional who has expertise in evaluating investments ...
  5. Ex-Post

    Another term for actual returns. Ex-post translated from Latin ...
  6. Econometrics

    The application of statistical and mathematical theories to economics ...
RELATED FAQS
  1. How are capitalism and private property related?

    Private property rights are central to a capitalist economy, its execution and its legal defenses. Capitalism is built on ... Read Full Answer >>
  2. Why are price and quantity inversely related according to the law of demand?

    The classic microeconomics supply and demand model shows price on the vertical axis and demand on the horizontal axis. In ... Read Full Answer >>
  3. What is the difference between ex-ante moral hazard and ex-post moral hazard?

    Moral hazard refers to the way a party acts in a particular situation if protected against risk. It describes the behavioral ... Read Full Answer >>
  4. What is the difference between moral hazard and morale hazard?

    Morale hazard is an insurance term used to describe an insured person's attitude about his belongings. It arises when the ... Read Full Answer >>
  5. Does the consumer or seller benefit more from a cash-on-delivery transaction?

    Cash-on-delivery (COD) systems reduce the risk of fraud or default for both the buyer and the seller, but it would be impossible ... Read Full Answer >>
  6. How do economists and psychologists calculate diminishing marginal utility differently?

    Some economists and psychologists agree on marginal utility, while others disagree. The universal applicability of the law ... Read Full Answer >>
Related Articles
  1. Fundamental Analysis

    Great Expectations: Forecasting Sales Growth

    Predicting sales growth can be something of a black art, unless you ask the right questions.
  2. Economics

    Earnings Guidance: Can It Accurately Predict The Future?

    Explore the controversies surrounding companies commenting on their forward-looking expectations.
  3. Options & Futures

    Moral Hazards: A Bump In The Contract Road

    Learn how this phenomenon can cause a party in an agreement to behave differently than expected.
  4. Investing

    Why International Diversification Matters Today

    Given the breadth and diversity of the U.S. economy and market, many U.S. investors feel comfortable keeping their money within U.S. borders.
  5. Economics

    Explaining the EBITDA Margin

    EBITDA margin can provide an investor with a cleaner view of a company's core profitability.
  6. Economics

    The U.S. Economy May Be Stronger Than You Think

    While the economic performance in the U.S. broadly disappointed in the first quarter, temporary factors presented one-off events that depressed output.
  7. Fundamental Analysis

    What is Quantitative Analysis?

    Quantitative analysis refers to the use of mathematical computations to analyze markets and investments.
  8. Chart Advisor

    Invest in Japan with this ETF

    The Japanese stock market has been front and center in the minds of many international traders over the past few weeks — and for good reason.
  9. Entrepreneurship

    The Story Behind Google's Success

    An ongoing commitment to innovation and rapid iteration drives Google's ongoing success.
  10. Charts & Patterns

    How to Analyze Pharma Stock Fundamentals

    What you need to know about analyzing the fundamentals of pharma stocks.

You May Also Like

Hot Definitions
  1. Fiduciary

    1. A person legally appointed and authorized to hold assets in trust for another person. The fiduciary manages the assets ...
  2. Expected Return

    The amount one would anticipate receiving on an investment that has various known or expected rates of return. For example, ...
  3. Carrying Value

    An accounting measure of value, where the value of an asset or a company is based on the figures in the company's balance ...
  4. Capital Account

    A national account that shows the net change in asset ownership for a nation. The capital account is the net result of public ...
  5. Brand Equity

    The value premium that a company realizes from a product with a recognizable name as compared to its generic equivalent. ...
Trading Center