Institutional Owners Are

question 6

Multiple Choice

Institutional owners are:

• A) shareholders in the large institutional firms listed on the New York Stock Exchange.
• B) banks and other lending institutions that have provided major financing to the firm.
• C) financial institutions, such as mutual funds and pension funds, that control large-block shareholder positions.
• D) prevented by the Sarbanes-Oxley Act from owning more than 50 percent of the stock of any one firm.

---

Definitions:

Marketable Securities

Financial instruments that can be quickly converted into cash at fair market value.

Financial Policy

A set of guidelines or principles set by a company that govern its decisions regarding financial management, investments, and financing strategies.

Accounts Receivable Financing

A type of financing arrangement wherein a business uses its outstanding invoices as collateral to receive immediate funds from a lender.

Secured Short-Term Loan

A loan that is backed by collateral and has a maturity period of one year or less.