Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

(Extra 5%) In the past decade, nearly $1.36 trillion in net flows were added to U.S. equity mutual funds and exchange-traded funds that mimic market

image text in transcribed
(Extra 5%) In the past decade, nearly $1.36 trillion in net flows were added to U.S. equity mutual funds and exchange-traded funds that mimic market indexes, while $1.32 trillion fled higher-costing actively managed counterparts. Indexing giants such as BlackRock Inc., Vanguard Group and State Street Corp. now wield considerable power over corporate America and can cast pivotal votes that determine everything from who sits ard to how executives deal with issues ranging from climate change to pay equity. What are potential issues if passively managed funds become a dominant player in the financial market? List at least two issues. Express your argument in no more than 3 sentences

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Handbook Of Energy Audits

Authors: Albert Thumann, William J. Younger

6th Edition

0824709985, 978-0824709983

More Books

Students also viewed these Accounting questions

Question

Determine if gender differences in PTSD exist.

Answered: 1 week ago