MOSAIC THEORY

Mosaic theory is basically a method which is used in the analysis of security for gathering the information and all the details about the specific company or corporation. Mosaic theory has the involvement of collecting activity of information using different resources, whether publically or privately, for the calculation of the worth of equity. Application of mosaic theory is quite hard because it is an art of science. For using mosaic theory a person must be experienced and logical about finding out pure speculation and rumors in the different piece of information available to them.

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.

Critics of the Patriot Act and the National Security Agency's domestic spying have repeatedly sounded the theme of excessive, if not abusive, government secrecy following Sept. 11. Almost no criticism, however, has addressed a major factor driving the post-9/11 upsurge in secrecy: the "mosaic theory" of intelligence gathering.

The theory holds that individually harmless pieces of information, when combined with other pieces, can generate a composite - a mosaic - that reveals national security vulnerabilities. Because of this informational synergy, records that would be unclassifiable in their own right may require protection. President Reagan often warned of KGB mosaic-making, but once he left office the theory receded into obscurity.