Shares in a publicly held corporation typically are:
A) owned mostly by management of the corporation.
B) widely dispersed and about two-thirds are held by institutional investors.
C) owned by a few investors holding many shares each.
D) owned mostly by individual investors,and these investors usually exercise their right to vote by attending shareholder meetings.

Question

Quizplus · Accepted Answer

Shares in a publicly held corporation are usually widely dispersed, and about two-thirds of the shares are held by institutional investors such as mutual funds, pension funds, and hedge funds. Management of the corporation typically owns only a small percentage of the shares. While some investors hold many shares each, the majority of investors are individuals who typically do not attend shareholder meetings or exercise their right to vote.

Shares in a Publicly Held Corporation Typically Are