Mosaic theory

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Mosaic theory in finance is the method used in security analysis to gather information about a corporation. Mosaic theory involves collecting information from different sources, public and private, to calculate the value of security. Applying the mosaic theory is as much art as it is science. An analyst gleans as many pieces of information as possible, see if they tell a story that makes sense, and decide whether to do a trade.

Using mosaic theory requires substantial experience and logic to put together the various pieces of information, for some of them may be pure speculation.

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