Interest may arise between bondholders and stockholders

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Critical thinking

Your friend, Khaled, believes that since capital markets are efficient, he doesn't need to read the financial press or be involved in stock research before purchasing stocks for his portfolio. He simply throws darts at the stock pages and buys the stocks the darts hit. Is stock research and analysis important when buying and selling stocks in an efficient market?

Give an example of how a conflict of interest may arise between Bondholders and Stockholders?

Reference no: EM131509353

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