

Information is essential
Who would buy a second-hand car without examining it? Who would have purchased a Hyundai Excel in the US in the 90’s ? Which investor would purchase a business without knowing it inside out? Why investors buy presale making loss companies stock? Why profitable companies distribute dividends? Asymmetric Information and Signal examples All the above relates to the so-called asymmetric information where one party has more or better information than the other when taking decision