Many economists and policymakers have raised concerns about crowd funding due to the existence of:
A)information costs facing small investors
B)information costs facing business start ups
C)transaction costs facing business start ups
D)increased competition for banks in funding business start ups

Question

Quizplus · Accepted Answer

Information costs facing small investors are a major concern with crowd funding. Due to the lack of regulation and standardized reporting, small investors may not have access to all the necessary information about the business they are investing in, which could lead to uninformed investment decisions and potential losses.

Many Economists and Policymakers Have Raised Concerns About Crowd Funding