mispricing
Incorrect price assignment
Mispricing is setting or calculating a price incorrectly—either too high or too low relative to actual value.
The term appears most often in finance, where mispriced assets create opportunities for arbitrage: The fund profits by identifying mispricing in the bond market.
Retailers misprice items through scanning errors or outdated tags.
To misprice is to assign such an incorrect price.
Exploiting price discrepancies
- inefficiencySuboptimal use of resources
- bubbleAir-filled film sphere
- correctionFixing of mistakes
- volatilityRapid, unpredictable changeability
speculation · anomaly · manipulation · overvaluation · undervaluation · spread · discount · premium
Error in estimation
- discrepancyDifference between expected and actual
- mistakeWrong action or decision
- blunderFoolish, costly mistake
- oversightSupervision or inadvertent omission
inaccuracy · misestimation · misjudgment · underestimation · overestimation · flaw · distortion · misquote
Estimation of worth
- assessmentFormal evaluation of worth
- estimationApproximate value judgment
- revaluationReassessing something's worth
- writedownReduction in book value
impairment · depreciation · amortization · benchmarking · comparables · multiples
Adhering to requirements
- auditFormal accounts examination
- supervisionOverseeing people or processes
- disclosureAct of revealing information
- enforcementCompelling compliance with rules
watchdog · antitrust · transparency · accountability · whistleblower · investigation · penalty · restatement
arbitrage
Exploiting price discrepancies
- inefficiencySuboptimal use of resources
- bubbleAir-filled film sphere
- correctionFixing of mistakes
volatility · speculation · anomaly · manipulation · overvaluation · undervaluation · spread · discount · premium · mismatch
miscalculation
Error in estimation
- discrepancyDifference between expected and actual
- mistakeWrong action or decision
- blunderFoolish, costly mistake
oversight · inaccuracy · misestimation · misjudgment · underestimation · overestimation · flaw · distortion · misquote · glitch
appraisal
Estimation of worth
- assessmentFormal evaluation of worth
- estimationApproximate value judgment
- revaluationReassessing something's worth
writedown · impairment · depreciation · amortization · benchmarking · comparables · multiples
compliance
Adhering to requirements
- auditFormal accounts examination
- supervisionOverseeing people or processes
- disclosureAct of revealing information
enforcement · watchdog · antitrust · transparency · accountability · whistleblower · investigation · penalty · restatement
- market phenomenamarket crash, market bubble, flash crash, correction, bubble
- misjudgmentsmisjudgment, mistake, error, blunder, miscalculation
- market bubblesbubble, asset bubble, tulip mania, dot-com bubble, housing bubble
- judgment errorsanchoring bias, confirmation bias, overconfidence, hindsight bias, optimism bias