What is the mosaic theory?

Mosaic theory is an approach that is sometimes used to find and collect information about a particular society. Security analysts, investors, corporate robbers and anyone else with interest in securities issued by this company are likely to use this multilateral data acquisition and analysis method. The data is collected from many sources available to analysts and investors, allowing an informed decision on the status of these securities.

There is a certain degree of controversy surrounding the use of mosaic theory. Proponents consider this method to be common sense and proper access to the collection of relevant data and decision -making whether the shares issued by the company should be recommended as an investment. Emphasis is placed on the qualification of the data collected, as this data may include verifiable data that is widely available to the public or reports that have just published the public. Data can also be Hearsay or rumors that are currently orbiting atDisputing events associated with the management, product line or other aspect of the issuing company. Those who promote the use of mosaic theory believe that any type of information that can be obtained should be considered as a means of protecting clients from taking poor investment decisions.

Critics of Mosaic Theory note that while most of the collected data come from public sources, there are situations where information that has not yet been published to the public may also include the evaluation process. For some, this creates a situation where there is some concern about the ethical use of these non -public data. Critics often note that since the data is not yet available to the general public, the money administrator or the security analyst should avoid the consideration of non -public information because this type of activity C CV contradicts the regulation tradedIntroduced persons who are introduced in a given jurisdiction.

At present, the use of mosaic theory as a valid means to evaluate the stability of corporation and the value of securities issued by this company is recognized by the CFA. One of the requirements that the Institute is outlined is that all data collected and considered as part of the evaluation process must be published to the client when the recommendation is made. This allows the client to decide whether it is unpleasant with any data obtained from a particular source, and take this factor into account before the decision on the investment opportunity.