Which of the Following Would Be Classified as an Institutional

question 341

Multiple Choice

Which of the following would be classified as an institutional investor?

• A) pension funds
• B) federal Reserve banks
• C) stock exchanges
• D) commodity brokers

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Definitions:

Balance Sheet

A financial statement summarizing a company's assets, liabilities, and shareholders' equity at a specific point in time.

Retained Earnings

The portion of net income left over for the business after it has paid out dividends to its shareholders.

Contributed Capital

The capital that shareholders contribute to a company beyond the par value of the shares they purchase.

Preferred Stock

A class of ownership in a corporation with a higher claim on assets and earnings than common stock, typically with predetermined dividend payments.