Individual investors in the U.S.can play an important part in corporate governance because:
I.a large fraction of households' portfolio is held directly in equity securities;
II.a large fraction of households' portfolio is held in pension funds;
III.a large fraction of households' portfolio is held directly in bank deposits

Question

Quizplus · Accepted Answer

Individual investors in the U.S. can play an important part in corporate governance because a large fraction of households' portfolio is held directly in equity securities. This means that individual investors have a significant stake in the ownership of companies and therefore have the power to vote on important corporate decisions at annual shareholder meetings. However, choices II and III are incorrect because they do not relate to direct ownership of equity securities, which is essential for individual investors to exercise their corporate governance rights.

Individual Investors in the U