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Mosaic Theory

The principle that assembling many public and non-confidential pieces — filings, lawful data, non-confidential expert color — into a sharper conclusion is legitimate research, even though it produces a real informational edge. It is the lawful counterpart to insider trading: an edge becomes illegal only when a decisive piece is material, nonpublic, and reached you through someone breaching a duty of confidentiality. Out-thinking lazier analysts with public information is the system working as intended.

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Related terms

Business · CEO Pay Ratio · Conflict of Interest · Explanation by Omission · Fair Dealing · Form 4

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