Type 1: Shareholders hire managers or the board (Agents) to run for them. Conflict arises if these Agents prioritize their own interest. Type 2: Conflict between shareholders. Few dominant shareholders making decisions for benefit, harming minority shareholders

A executive board and a board of supervisors

Trade barriers and import controls

Improving country trade competitiveness, fixed/floating exchange rates.

Interest rates and money supply

Government spending and taxes

Has a physical location and primary purpose is to match the willing to sell with those buying.

In Equities and long-term debts = Over-the-counter (OTC) markets)

Markets, where the securities are bought and sold after original sale (Stock market)