In Prediction Markets, the Probability of an Event Is Given

question 238

True/False

In prediction markets, the probability of an event is given as 1 minus the price.

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Definitions:

GAAP

Generally Accepted Accounting Principles, a set of accounting standards and procedures used in the U.S. to govern financial reporting and ensure consistency.

Accounting Standards

Rules and guidelines used in the preparation and presentation of financial statements to ensure accuracy, completeness, and consistency.

Asset

Anything of value owned by a company.

Business

All profit-seeking activities and enterprises that provide goods and services necessary to an economic system.