Mosaic Theory

AAA

DEFINITION of 'Mosaic Theory'

A method of analysis used by security analysts to gather information about a corporation. Mosaic theory involves collecting public, non-public and non-material information about a company in order to determine the underlying value of the company's securities and to enable the analyst to make recommendations to clients based on that information.

INVESTOPEDIA EXPLAINS 'Mosaic Theory'

Some see this style of analysis as a misuse of insider information, but the CFA Institute (formerly known as AIMR) has recognized mosaic theory as a valid method of analysis. However, analysts using this method should disclose the details of the information and methodology they used to arrive at their recommendation.

RELATED TERMS
  1. Analyst

    A financial professional who has expertise in evaluating investments ...
  2. Chartered Financial Analyst - CFA

    A professional designation given by the CFA Institute (formerly ...
  3. Insider Information

    A non-public fact regarding the plans or condition of a publicly ...
  4. Security Analyst

    A financial professional who studies various industries and companies, ...
  5. Money Manager

    A business or bank responsible for managing the securities portfolio ...
  6. Material Insider Information

    Material information, about certain aspects of a company, that ...
Related Articles
  1. What You Need To Know About Financial ...
    Insurance

    What You Need To Know About Financial ...

  2. Defining Illegal Insider Trading
    Economics

    Defining Illegal Insider Trading

  3. Introduction To Fundamental Analysis
    Markets

    Introduction To Fundamental Analysis

  4. The 9 To 5 Job: Challenging How We Earn ...
    Economics

    The 9 To 5 Job: Challenging How We Earn ...

comments powered by Disqus
Hot Definitions
  1. 80-10-10 Mortgage

    A mortgage transaction in which a first and second mortgage are simultaneously originated. The first position lien has an ...
  2. Passive ETF

    One of two types of exchange-traded funds (ETFs) available for investors. Passive ETFs are index funds that track a specific ...
  3. Walras' Law

    An economics law that suggests that the existence of excess supply in one market must be matched by excess demand in another ...
  4. Market Segmentation

    A marketing term referring to the aggregating of prospective buyers into groups (segments) that have common needs and will ...
  5. Effective Annual Interest Rate

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

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
Trading Center