Assume There Are Two Companies

Assume there are two companies. Both issue stock, but one is high quality and the other low quality. If potential investors cannot distinguish the quality of the company:

A) the shares of the low quality firm will disappear from the market.
B) the shares of both companies will trade on the market.
C) the shares of the high quality firm will disappear from the market.
D) this is an example of moral hazard and the shares of both companies will cease to trade.