Which of the following does NOT accurately explain why institutional investors are much more potent stakeholders than individual investors?
A) Institutional investors can buy and sell a large number of shares at once.
B) The size of institutional investors' assets under management is larger relative to the investment made by individual investors.
C) Institutional investors can exercise block-voting rights in the corporate-governance process.
D) While institutional investors are external stakeholders of a firm, individual investors are internal stakeholders.

Question

Quizplus · Accepted Answer

Institutional investors have considerable sway because of the size of their assets under management (AUM). They can buy and sell a large number of shares at once, or exercise block-voting rights in the corporate-governance process. These abilities make institutional investors much more potent stakeholders.

Which of the Following Does NOT Accurately Explain Why Institutional