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Agency problem
The financial definition for Agency problem:
Conflicts of interest among stockholders, bondholders, and managers.
Similar MatchesReplacement chain problemReplacement chain problem Idea that future ../../finance-glossary/ment decisions must be taken into account in selecting among projects.
Underinvestment problemUnderinvestment problem The mirror image of the asset substitution problem, in that stockholders refuse to invest in low-risk assets to avoid shifting wealth from themselves to debtholders.
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