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The Ratio of the Amount of Shares in Publicly Traded

Question 39

Multiple Choice

The ratio of the amount of shares in publicly traded companies being owned by individuals compared to professionally managed funds has changed in the past fifty years. Which of the following best describes what has been observed in the stock market?


A) Most share ownership is by professionally managed companies and individual traders are always out positioned in the stock market.
B) Most share ownership is by individuals who have more limited access to information than investment professionals so the market cannot be efficient.
C) Most share ownership is by professionally managed funds and there has been a concurrent rise in the activity of shareholders in corporate governance.
D) Most share ownership is by professionally managed funds so individuals no longer impact corporate governance.
E) Most share ownership is by individuals and corporate governance is now fragmented and weak.

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