Which of the following strategies is available to individual investors that are not available to institutional investors?
A) Individuals are not required to own diversified portfolios.
B) Individuals are not prohibited from short sales or margin trading, as are some institutions.
C) Many large institutional investors cannot take positions in very small companies leaving this field for individual investors.
D) All the above strategies are open to individual investors.

Question

Quizplus · Accepted Answer

All the options listed are strategies or opportunities that are more readily available or exclusive to individual investors compared to institutional investors. Individual investors are not bound by the same regulatory or policy constraints that often limit the actions of institutional investors, such as the need for diversification, restrictions on short sales or margin trading, and the ability to invest in very small companies.

Which of the Following Strategies Is Available to Individual Investors