The Mechanism of Creating Financial Innovations in the Context of the Presence of the Phenomena of Information Asymmetry and Lack of Market Participants' Knowledge

Adam Oleksiuk
2016 IJISET-International Journal of Innovative Science, Engineering & Technology   unpublished
The aim of this text is to identify the mechanism behind the creation of financial innovations in the context of occurrence of asymmetry of information and lack of knowledge of market participants. The first part presents the definitions of financial innovations and discusses the systematic of their sources of appearance. Then I go on to discuss the importance of information in economy, including the negative consequences of asymmetry of information for market participants. The article features
more » ... he article features a thesis saying, that the market of financial innovations introduces a set information order in the economic system on one side, and on the other the phenomenon of information asymmetry as the permanent characteristic of modern investment environment within the market of financial innovations.