Institutional investors such as mutual funds or pension funds that have large holdings of an MNC's stock do not normally want to take control of it and therefore have no influence over management of the MNC.

Question

Quizplus · Accepted Answer

Institutional investors with large holdings of an MNC's stock often have significant influence over management, and can use that influence to push for changes in strategy or corporate governance. While they may not seek to take direct control of the company, their influence is still an important factor in shaping the MNC's decisions and performance.

Institutional Investors Such as Mutual Funds or Pension Funds That