What are the two types of asymmetric information in business acquisition?

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Adverse selection occurs before a transaction when one party has more or better information than the other, often leading to a poor selection of risks. Moral hazard happens after a transaction when one party has an incentive to take undue risks because the cost of those risks will be borne, at least in part, by the other party. Both are key issues in the context of business acquisitions.

What Are the Two Types of Asymmetric Information in Business