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Glossary > S > "Signal" Definition

Signal

The process of conveying information through a firms actions. The more costly it is to provide a signal, the more credibility it has. For example, to call a press conference and tell everyone that the firms prospects have improved is less effective than saying the same thing and raising the dividend.

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Signal \ The process of conveying information through a firms actions. The more costly it is to provide a signal, the more credibility it has. For example, to call a press conference and tell everyone that the firms prospects have improved is less effective than saying the same thing and raising the dividend.

Signal / the process of conveying information through a firms actions. the more costly it is to provide a signal, the more credibility it has. for example, to call a press conference and tell everyone that the firms prospects have improved is less effective than saying the same thing and raising the dividend.