If a buyer and seller enter into a transaction with different information about the value of that which is being exchanged, then an information asymmetry exists. Classic examples of asymmetric information situations include the owner of car knowing more about the true value of the car than a buyer, the seller of a life insurance contract knowing less than the buyer about the true likelihood of a claim, or a stock market dealer knowing less than a firm's management about the value of the firm's stock. The asymmetry simply refers to the information on the two sides of the deal not being symmetric.