Conflicts of interest between shareholders and bondholders are known as:
A)trustee costs.
B)financial distress costs.
C)dealer costs.
D)agency costs.
E)underwriting costs.

Question

Quizplus · Accepted Answer

Conflicts of interest between shareholders and bondholders are a type of agency costs, as shareholders may prioritize actions that benefit them but may be detrimental to bondholders.

Conflicts of Interest Between Shareholders and Bondholders Are Known As