The principal and interest What is the true definition of Compound interest? Main part amount you are borrowing

This free-rider problem arises when people can benefit from a good without paying for it; as a result, nobody pays and the good isn’t produced. In financial markets, the free-rider problem arises in the production of information.

Can “Hostile takeover” by private equity firm reduce Information Asymmetries?

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  A hostile takeover is one opposed by a company’s management. In this case, a takeover firm approaches the company’s shareholders, offering a price for their stock.
  
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  Hostile takeovers reduce the moral hazard problem involving shareholders and managers. If a company’s managers are not doing their best to maximize profits, a takeover firm has an incentive to change things.
  

What is the difference between friendly takeover and hostile takeover?

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  In a friendly takeover, it makes a deal with the company’s managers and board of directors. Everyone agrees that stockholders will relinquish their shares in the company for a certain price. The company’s managers usually keep their jobs, but now they are working for the takeover firm.
  
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  A hostile takeover is one opposed by a company’s management. In this case, a takeover firm approaches the company’s shareholders, offering a price for their stock.
  

Find a false statement about Venture Capital firm:

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  A venture capital (VC) firm buys ownership shares in new companies.
  
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  The companies are typically small, private ones that plan to grow and need funds for investment.
  
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  A venture capital firm doesn’t buy a whole company, but it buys a substantial share.
  
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  The company uses the payment from the VC firm to help finance its expansion
  

Indicate the incorrect methods that banks use for reducing information asymmetries in banking system:

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