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By Definition, the pecking order Theory states that firms prefer to issue debt rather than equity...

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Finance

By Definition, the pecking order Theory states that firms preferto issue debt rather than equity if internal finance isinsufficient, e.g. due to assymetric information and related(mis)Interpretation by Investors.

What does "assymetric Information and Investor misinterpretationactually mean in this context?" I would be very greatful for athoroughly explained answer.

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The pecking order theory states that due to asymmetric information debt is preferred over external equity Asymmetric information means that the investors of a company are not provided with    See Answer
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By Definition, the pecking order Theory states that firms preferto issue debt rather than equity if internal finance isinsufficient, e.g. due to assymetric information and related(mis)Interpretation by Investors.What does "assymetric Information and Investor misinterpretationactually mean in this context?" I would be very greatful for athoroughly explained answer.

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