To better align your agent's incentives to your own when buying securities
A)Offer the agent a high price
B)Offer the agent a low price
C)Offer the agent a price based on performance of the security
D)All of the above

Question

​To better align your agent's incentives to your own when buying securities
A)​Offer the agent a high price
B)Offer the agent a low price
C)Offer the agent a price based on performance of the security
D)​All of the above

Quizplus · Accepted Answer

Offering the agent a price based on the performance of the security will align their incentives with your own because if the security does well, they will earn more. This encourages them to make well-informed investment decisions. Offering a high or low price may not necessarily align their incentives with yours, as they may still prioritize their own profit over your investment goals.

​To Better Align Your Agent's Incentives to Your Own When

To Better Align Your Agent's Incentives to Your Own When