Underinvestment problem

• The mirror image of the asset substitution problem, wherein stockholders refuse to invest in low-risk assets to avoid shifting wealth from themselves to the debt holders.


Follow this link for all the terms related to investment.

 Embedded terms in definition
 Asset substitution problem
Asset substitution
 Related Terms
 Adverse selection problem
Agency problem
Asset substitution problem
Replacement chain problem

<< Underfunded pension plan Underlier >>

Practical Advice for Everyone on How to Save and Manage Money: No matter how old or young you are, there are some basic things you can do to better manage and protect your money. Here are recommendations from FDIC Consumer News. More...

A true friend is one who overlooks your failures and tolerates your successes. - Doug Larson


Copyright 2009-2019 GVC. All rights reserved.