DEFINITION of 'Expert Network'
A group of professionals who are paid by outsiders for their specialized information and research services. Expert networks can be very large, encompassing tens of thousands of individuals with high-level knowledge of a variety of subjects. Experts are commonly paid the high fees associated with the provision of consulting services and may work under the umbrella of a large company that assembles the expert-professionals, markets their services and contracts their work.
BREAKING DOWN 'Expert Network'
Expert networks provide a key service to members of the investment community. Suppose a portfolio manager is considering investing in a drug company that is about to launch a major new product. In order to make an informed decision, he needs expert knowledge of the pharmaceutical industry, the new drug and the drug's competitors. The portfolio manager knows little about pharmaceuticals, and he doesn't know anyone in the pharmaceutical industry either. To fill the gaps in his knowledge and in his own personal and professional network, he might seek the help of an expert network. The downside is that the provision of expert services can create legal issues if experts disclose information that could be considered proprietary or material and nonpublic.