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Adam always expects special treatment,and he seems to be preoccupied with his own success.His interpersonal relationships are generally superficial because he seems to lack the ability to understand how others feel.Last week Adam went in for a psychological assessment,and based on that assessment,he was told that he might have a personality disorder.Based on his behavior,it is most likely that Adam has
Agency Problem
A conflict of interest inherent in any relationship where one party is expected to act in the best interest of another.
Moral Hazard
A condition in which a person can benefit, usually financially, by acting unethically or immorally, i.e., the person is tempted to be less than honest and ethical. An insurance term. A moral hazard exists when executive compensation is heavily based on the market price of the company’s stock.
Arbitrage
The practice of taking advantage of price differences in different markets to make a profit.
Money Markets
Financial markets focused on short-term borrowing and lending with maturities of less than one year, dealing in instruments like Treasury bills and commercial paper.
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