Definition for : Asymmetry - shareholder / creditor
GLOSSARY LETTER
There is an asymmetry in status between the shareholder and the creditor of a company: Shareholders can lose the their whole Investment in the company and at the same time potentially gain unlimited profits, while a creditor at best receives the flows stipulated in the loan contract. See also Shareholders' equity and Option model.
(See Chapters 27, 34, 35 and 39 of the Vernimmen)
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