Which Statement Is True About Institutional Investors

question 121

Multiple Choice

Which statement is true about institutional investors?

• A)Institutional investors are responsible for the majority of trading on major exchanges.
• B)Institutional investors own the majority of stock listed on the major exchanges.
• C)Institutional investors tend to not be financial intermediaries.
• D)Institutional investors are not influential in setting prices in the secondary market.

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Definitions:

Actual Return

The real profit or loss achieved on an investment over a particular time period, often expressed as a percentage.

Risk-free Return

The theoretical return on an investment with zero risk of financial loss, typically associated with government bonds.

Treasury Bills

Short-term government securities issued at a discount from the face value and maturing at par, used as a tool for managing liquidity and financing government debt.

Common Stocks

Type of equity security that represents ownership in a corporation, offering voting rights and potential dividends.