Final answer:
Selling shares in privatized companies too cheaply can attract speculative investors, undervalue the company, and hinder capital-raising efforts.
Step-by-step explanation:
When selling shares in privatized companies too cheaply, there are several potential problems that can arise. Firstly, selling shares at a low price may attract speculative investors who are only interested in making a quick profit, rather than supporting the long-term growth and success of the company. This can lead to short-term thinking and a lack of commitment to the company's goals. Additionally, if shares are sold too cheaply, it may undervalue the company and prevent it from raising sufficient capital to fund its operations, investments, and expansion plans. The company may struggle to attract serious and long-term investors who are willing to provide the necessary funds for sustainable growth.