Meaning UNDERINVESTMENT PROBLEM: The mirror image of the asset substitution problem, in that stockholders refuse to invest in low-risk assets to avoid shifting wealth from themselves to debtholders
More terms such as Underinvestment problem in Dictionary U.
- Definition Uncovered Call:
- Examples position in which the writer does not own shares of underlying stock represented by the option contracts. Uncovered calls are much riskier for the writer than a covered call, where the writer of the underinvestment problem definition.
- Definition Useful Life:
- Examples The expected period of time during which a depreciating asset will be productive underinvestment problem explain.
- Definition Upside Potential:
- Examples The amount by which analysts or investors expect the price of a security may increase underinvestment problem what is.
- Definition Undigested Securities:
- Examples Newly issued securities that are not purchased because of lack of demand during the initial public offering underinvestment problem meaning.
- Definition Underlying Debt:
- Examples Municipal bonds issued by government entities but under the control of larger government entities and for which the larger entity shares the credit responsibility underinvestment problem abbreviation.