Large Mutual Funds Can Exert Some Control Over the Management

question 44

True/False

Large mutual funds can exert some control over the management of firms because they commonly are the largest shareholders.

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Definitions:

Representative Government

A form of government in which citizens elect officials to create laws and policies on their behalf.

Joint Stock Companies

Businesses owned by shareholders where the stock can be bought and sold on the open market, spreading the risk and profit among many.

English Investors

Individuals or entities from England that allocate capital with the expectation of earning a financial return, often involving investments in foreign or domestic markets.

Colonists as Stockholders

A historical reference to early European settlers of the Americas who were often granted shares or stakes in colonial ventures, treating colonization as a business enterprise.