Related to the Economics in Practice on page 233: In the United States, more mature companies often have a larger percentage of stock held by ________ than do newer companies, and newer companies often have a larger percentage of stock held by ________ than do more mature companies.

Question

Quizplus · Accepted Answer

Institutions such as pension funds and mutual funds tend to invest more heavily in established companies, leading to a larger percentage of stock held by institutions in more mature companies. As newer companies are often privately held or have limited public offerings, insiders such as founders and early investors typically hold a larger percentage of stock in these companies.

Related to the Economics in Practice on Page 233: in the United