The Ownership of Major Blocks of Stock by Institutional Investors

question 36

Multiple Choice

The ownership of major blocks of stock by institutional investors may result in all of the following EXCEPT:

• A) increased monitoring of CEO performance.
• B) a lower proportion of insiders on the board of directors.
• C) increased emphasis on the effectiveness of the boards of directors.
• D) fewer managerial defenses against takeovers.

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Definitions:

Moderate

Exhibiting average or medium degrees in any measurable quality, avoiding extremes.

Conservative

A political or social philosophy that emphasizes the importance of preserving traditional values and institutions.

Mortality Data

Statistical records or information pertaining to the number, cause, and incidence of deaths in a population.

Canada

A country located in the northern part of North America, known for its vast landscapes, multicultural heritage, and bilingual (English and French) population.