Question

In a financial transaction, the ____________ always has more information than the ____________.

In a financial transaction, the ____________ always has more information than the ____________.

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Answer #1

Since in the financial markets sellers of the share, bond and other financial assets have better information regarding these assets because they deal daily these types of assets.

On the other hand, the buyer who has hustle started investing money in the financial markets, he has very little information about these assets.

Hence it can be said that in a financial transactions, the sellers always has more information than the buyers.

Hence correct answer will be: 1. Seller 2. Buyers.

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