Underinvestment Problem

Underinvestment Problem
Similar to an asset substitution situation, where stockholders decide not to invest in assets that have a low risk to prevent transferring their wealth to debtholders.

Random Finance Terms for the Letter U

Related posts:

  1. Underperform
  2. Underpayment Penalty
  3. Underfunded Pension Plan
  4. Underlying Profit
  5. Underpricing

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