SIE practice questioneasyMarket Participants - Institutional Investors
A pension fund making large trades in the market is best described as which type of market participant?
- ABroker-dealer
- BRetail investor
- CMarket maker
- DInstitutional investor✓ Correct answer
Explanation
Why D — Institutional investor
Pension funds, insurance companies, and mutual funds are examples of institutional investors, characterized by large-scale transactions. Retail investors are individuals. Market makers provide liquidity, while broker-dealers facilitate trades.
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 1,867+ SIE questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Related Investment Companies & Packaged Products questions
- Which statement correctly describes U.S. Treasury bills (T-bills)?
- Which type of investment vehicle is regulated by the Investment Company Act of 1940?
- A registered representative is helping a client build a portfolio. What principle requires the rep to make only…
- Under the Investment Company Act of 1940, which of the following is a type of registered investment company?