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. 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 >>
  2. 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 >>
  3. 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 >>
  4. 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 >>
  5. 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. Stock Analysis

    A Trader's Look at the S&P 500

    Moving averages are sending an important signal, and it's probably not what you think.
  5. Chart Advisor

    Is Now the Time to Invest in North America?

    Bullish chart patterns across the North American markets suggest that now might actually be a wise time to allocate closer to home.
  6. Chart Advisor

    These Oil Service Stocks Are Ready For A Move Higher

    In the oil services sector, active traders have been trying hard to establish a floor and the double bottom pattern that is appearing on the chart suggests that a short-term reversal could be ...
  7. Trading Strategies

    The Top Five Stocks For Novice Swing Traders

    New to Swing Trading? Here are the top five stocks recommended for swing trading.
  8. Chart Advisor

    These ETFs are Breaking Out of Chart Patterns Now

    Three buys and one sell; here are four ETFs breaking out of chart patterns right now.
  9. Trading Strategies

    Capitalize On Collars To Enhance Your Trades

    Trade collaring measures current technicals and makes swift adjustments to account for environmental changes.
  10. Trading Strategies

    Look At The Whole Picture To Manage Whipsaws

    Look at past action to organize a whipsaw’s volatile characteristics, identifying harmonic levels that may offer low risk entry prices.

You May Also Like

Hot Definitions
  1. Interest Rate Risk

    The risk that an investment's value will change due to a change in the absolute level of interest rates, in the spread between ...
  2. Income Effect

    In the context of economic theory, the income effect is the change in an individual's or economy's income and how that change ...
  3. Price-To-Sales Ratio - PSR

    A valuation ratio that compares a company’s stock price to its revenues. The price-to-sales ratio is an indicator of the ...
  4. Hurdle Rate

    The minimum rate of return on a project or investment required by a manager or investor. In order to compensate for risk, ...
  5. Market Value

    The price an asset would fetch in the marketplace. Market value is also commonly used to refer to the market capitalization ...
  6. Preference Shares

    Company stock with dividends that are paid to shareholders before common stock dividends are paid out. In the event of a ...
Trading Center