Question

Placing officers of a ________ firm on the board of directors of a new firm can reduce the problem of ________.

Answer 1

The answer is "security exchange and adverse selection"

Step-by-step explanation:

In this question, the above given-choice is correct because the issue of information asymmetry can be decreased by including security personnel among the directors of a new firm. And throughout the Security And exchange Agent would distinguish and direct the Boards on topics of elimination of information asymmetry, based mostly on the risk associated with the market.