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.

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Definitions:

Volatility

A statistical measure of the dispersion of returns for a given security or market index, often associated with the level of risk.

Interest Rate Movements

The fluctuations in interest rates which can affect the cost of borrowing money and the performance of investments.

Interest Rates

The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan amount.

Supply and Demand

Economic model describing how prices vary as a result of a balance between product availability and the desire of consumers.