Homework answers / question archive / Why are not stocks the most important source of external financing for businesses? Explain this briefly using

Why are not stocks the most important source of external financing for businesses? Explain this briefly using

Finance

Share With

Why are not stocks the most important source of external financing for businesses?

Explain this briefly using.

a-) the adverse selection in equity contracts and the most important tool to solve this.

b-) the moral hazard in equity contracts and issues in equity contracts and explain the tools to solve them.