Institutional investors often avoid investing in spinoffs because:
A) they often pay no dividends and may be too small.
B) they tend to be too risky for most institutional investors.
C) they generally have lower than average returns.
D) they require too great a commitment of funds.

Question

Quizplus · Accepted Answer

Spinoffs often pay no dividends and may be too small, making them less attractive to institutional investors who typically seek stable, dividend-paying investments.

Institutional Investors Often Avoid Investing in Spinoffs Because