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. Insurance

    What You Need To Know About Financial ...

  2. Economics

    Defining Illegal Insider Trading

  3. Markets

    Introduction To Fundamental Analysis

  4. Stock Analysis

    The Death Of The Glamour Stock

Hot Definitions
  1. Capitulation

    When investors give up any previous gains in stock price by selling equities in an effort to get out of the market and into ...
  2. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  3. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  4. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  5. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  6. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
Trading Center