Expert Network

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.

Investopedia explains '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.



comments powered by Disqus
Hot Definitions
  1. Passive ETF

    One of two types of exchange-traded funds (ETFs) available for investors. Passive ETFs are index funds that track a specific benchmark, such as a SPDR. Unlike actively managed ETFs, passive ETFs are not managed by a fund manager on a daily basis.
  2. Walras' Law

    An economics law that suggests that the existence of excess supply in one market must be matched by excess demand in another market so that it balances out. So when examining a specific market, if all other markets are in equilibrium, Walras' Law asserts that the examined market is also in equilibrium.
  3. Market Segmentation

    A marketing term referring to the aggregating of prospective buyers into groups (segments) that have common needs and will respond similarly to a marketing action. Market segmentation enables companies to target different categories of consumers who perceive the full value of certain products and services differently from one another.
  4. Effective Annual Interest Rate

    An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following:
  5. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option is purchased and the lower premium option is sold - both at the same time. The higher the debit spread, the greater the initial cash outflow the investor will incur on the transaction.
  6. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious debt when government leaders use borrowed funds in ways that don't benefit or even oppress citizens. Some legal scholars argue that successor governments should not be held accountable for odious debt incurred by earlier regimes, but there is no consensus on how odious debt should actually be treated.
Trading Center