The general form of the solution of the basic equation of sequential analysis (3·6) is determined (equations (3·14), (6·6), and (6·11)), and is conjectured to have a special reduction in the ‘no-overshoot’ approximation. The solution turns out to involve certain wellknown measures of discriminatory information. Further properties of the loss function and the decision boundaries are given in Theorems 2 and 3. An interesting general form of Wald's identity is found to hold for the sequential process, see equation (7·7).