Which of the Following Does Not Explain Why Activist Investors

question 8

Multiple Choice

Which of the following does not explain why activist investors have more power over a firm than individual investors?

• A) Activist investors can buy or sell large numbers of shares at once.
• B) Activist investors can exercise block-voting rights over individual investors.
• C) Activist investors can demand seats on company boards.
• D) Activist investors have more legitimacy than individual investors.

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Definitions:

Domestic Violence

A pattern of behavior in any relationship that is used to gain or maintain power and control over an intimate partner.

Financially

Pertaining to money or how money is managed, often used in the context of managing expenses, income, or investments.

Selection Effect

The bias introduced in analysis results due to the way in which subjects or participants are selected or self-select into a study.

Cohabitation

Being in a romantic and sexual relationship while sharing a living space, without the formalities of marriage.