noun
- the act of setting an incorrect price for something, especially in financial markets where an asset’s price does not reflect its true value
Usage: finance; economics
Examples
- The mispricing of the stock created an opportunity for savvy investors.
- Market inefficiencies often lead to mispricing of securities.
- The company’s mispricing of its products resulted in significant losses.
- Analysts identified several instances of mispricing in the bond market.
- The mispricing was corrected when new information became available.
- Algorithmic trading can sometimes cause temporary mispricing of assets.