Many economists and policymakers have raised concerns about crowdfunding due to the existence of
A) information costs facing small investors.
B) information costs facing business start ups.
C) transactions costs facing business start ups.
D) increased competition for banks in funding business start ups.

Question

Quizplus · Accepted Answer

Information costs facing small investors are a significant concern in the context of crowdfunding, as these investors may not have access to the same level of information or expertise as larger investors or institutional investors. This can make it difficult for small investors to make informed investment decisions and lead to potential losses.

Many Economists and Policymakers Have Raised Concerns About Crowdfunding Due