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Conflicts of interest between stockholders and bondholders are known as?

1) Equity conflicts
2) Debt conflicts
3) Capital conflicts
4) Interest conflicts

User Rem
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Final answer:

Conflicts of interest between stockholders and bondholders are typically known as agency conflicts, which is not listed as an option; the closest choice from the provided options would be 'Debt conflicts'.

Step-by-step explanation:

The conflicts of interest between stockholders and bondholders are known as agency conflicts or agency problems. This is not one of the options provided, but it's the accurate term in finance. However, if we have to choose from the options given, the closest term would be 'Debt conflicts', although this term is not commonly used. These conflicts arise because stockholders tend to have an incentive to take riskier actions to maximize their returns, which might not align with the interest of bondholders who prefer less risk as they are interested in the firm being able to make its interest payments and returning their principal.

User ZnArK
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