The moral hazard in the financial market is:?

  • Thread starter Thread starter megan
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megan

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A. buyers of stocks and bonds may not monitor the firm's management.
B. only poorly-run firms need to raise funds by selling stocks and bonds.
C. knowing the difference between well-run and poorly-run firms.
D. once the firm raises the funds, it can spend the money in ways that reduce profits.
 
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