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nekit [7.7K]
3 years ago
10

Marika received a tip from a close friend who is an executive manager of a publicly traded company called MicroGreen Inc. The ma

nager received some inside information about how to trade MicroGreen stock to get a huge profit. He shared this information with Marika. This scenario is an example of___________.
Business
1 answer:
saveliy_v [14]3 years ago
7 0

Answer:

<u>Information asymmetry.</u>

Explanation:

Information asymmetry is characterized as a market failure that causes power imbalance. This occurs when some party involved has more information than another party.

This situation is becoming more widespread in microeconomics, as it interferes with the classic concept that the free market must follow the concept of perfect competition.

But information asymmetry is a market failure that directly impacts business relationships, and causes cases of adverse selection and moral hazard.

Ideally, there should be greater transparency in the financial statements that are required to be published so that the risk of information asymmetry between the company and investors is reduced.

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3 years ago
Read 2 more answers
Wallace Container Company issued $100 par value preferred stock 10 years ago. The stock provided a 7 percent yield at the time o
pshichka [43]

Answer: kp = D/Po

               D = 0.07 X $100 = $7

               kp  = 7/63

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Explanation: The dividend paid on the preferred stock is 7 percent of the par value and the current market price is $63. Thus, the cost of preferred stock can be obtained by dividing the dividend paid by the current market price of the preferred stocks.

3 0
3 years ago
Alice owns land with an adjusted basis of $610,000 subject to a mortgage of $350,000. On April 1, Alice sells her land subject t
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$1720,000

Explanation:

Please see attachment .

3 0
3 years ago
How are issues such as customer theft and spoilage addressed at year-end?
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3 years ago
"Clothing maker The Gap states that its purpose as an organization is to "create emotional connections with customers around the
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Answer:

mission statement

Explanation:

Mission statement -

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