________ refers to an action that an individual with private information takes to convince others about her information.
A) Sniping
B) Signaling
C) Hedging
D) Speculating

Question

Quizplus · Accepted Answer

Signaling refers to the act of an individual with private information taking an action to communicate that information to others. This can be done through various means, such as making a large financial investment to signal confidence in a company, or earning a prestigious degree to signal intelligence to potential employers. Sniping refers to making a last-minute bid or offer in an auction, hedging refers to reducing risk by taking opposite positions in different markets, and speculating refers to taking a high-risk investment position in hopes of a high return. None of these reflect the specific act of communicating private information to others.

________ Refers to an Action That an Individual with Private