Which of the following indicates why the role of vigilant investors and investment fund managers is important for the efficient operation of an economy?
A) These investors generally serve on the boards of directors of corporations.
B) These investors tend to buy and sell stocks in a way that rewards good management.
C) These investors help allocate capital efficiently among firms and among investment projects.
D) Both b and c are true.

Question

Quizplus · Accepted Answer

Vigilant investors and fund managers play a crucial role in the economy by buying and selling stocks in a manner that rewards well-managed companies (B) and by efficiently allocating capital among firms and projects, ensuring that resources are directed towards the most promising opportunities (C).

Which of the Following Indicates Why the Role of Vigilant