The Ownership of Major Blocks of Stock by Institutional Investors

question 48

Multiple Choice

The ownership of major blocks of stock by institutional investors have resulted in all of the following EXCEPT

• A) making CEOs more accountable for their performance.
• B) increasing the concentration of ownership of large U.S. firms.
• C) focusing attention on ineffective boards of directors.
• D) tying the compensation of CEOs to measurable financial criteria.

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Definitions:

Product X

This term is unspecified and could refer to any product or item being discussed or analyzed in a specific context.

Total Utility

The complete pleasure or advantage a customer gets from using a certain amount of products or services.

Rational Consumer

An economic concept of a consumer who seeks to maximize utility or satisfaction from goods and services within their budget constraints.

Equilibrium

The state in which market supply and demand balance each other, and as a result, prices become stable.