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These two problems about Financial Institutions and the Financial Crisis a. Companies will get funds when they sell stocks or issue bonds in the primary
These two problems about Financial Institutions and the Financial Crisis a. Companies will get funds when they sell stocks or issue bonds in the primary market. However, why do these companies still need to pay attention to the trading conditions of their company's shares/bonds on the secondary market? b. Why is the financial system safety net built by the Government (government safety net) potentially creating adverse selection problems and moral hazards? Explain!
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