Institutional investors collectively own a controlling interest in virtually every large publicly traded U.S. corporation
A) as a consequence of favorable federal legislation.
B) due to anti-trust court cases.
C) because they practice cross-listing on regional exchanges.
D) as a consequence of the size of their investment funds pool.

Question

Quizplus · Accepted Answer

Institutional investors, such as pension funds, mutual funds, and insurance companies, typically have large pools of investment funds, allowing them to purchase significant amounts of corporate shares. As a result, they collectively own a large proportion of many corporations. This ownership is not due to federal legislation, anti-trust court cases, or cross-listing on regional exchanges, but rather a result of the size of their investment funds.

Institutional Investors Collectively Own a Controlling Interest in Virtually Every