All marketsIntermediate

Transparency

a.k.a. Price transparency, Market transparency

How openly information is shared, about prices, costs, decisions or a firm's finances.
In plain English

How openly information is shared, about prices, costs, decisions or a firm's finances.

Transparency means being able to see what is going on. Price transparency means you can see real prices and costs before you trade. Central bank transparency means publishing decisions, minutes and forecasts so markets understand the reasoning. Corporate transparency means honest financial reports and audits.

More transparency usually means fairer prices and fewer nasty surprises. Markets that are opaque, where only insiders know the real price, tend to favour the insiders. A broker that is vague about how it makes money deserves extra scrutiny.

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