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In the passage, the author is primarily concerned with doing which of the following? According to the passage, the purpose of t
In the passage, the author is primarily concerned with doing which of the following? According to the passage, the purpose of t
admin
2009-04-18
29
问题
In the passage, the author is primarily concerned with doing which of the following?
According to the passage, the purpose of the requirement suggested in lines 30-33 would be which of the following?
选项
A、To encourage institutional stockholders to sell stock that they believe will decrease in value
B、To discourage institutional stockholders from intervening in the operation of a company whose stock they own
C、To discourage short-term profit-taking by institutional stockholders
D、To encourage a company’s employees to take an active role in the ownership of stock in the company
E、To encourage investors to diversify their stock holdings
答案
C
解析
This question asks you to identify the stated purpose of the author’s suggestion in lines 30-33, namely, that any institution holding 20 percent or more of a corporation’s stock be required to give the public one day’s notice of the intent to sell that stock. The best answer is C. The purpose of the requirement that institutions holding 20 percent or more of a company’s stock be required to give advance public notice of the sale of that stock is stated in lines 38-42: to prevent insititutions from “trading shares at the propitious moment” and to encourage them to concentrate on increasing a company’s productivity. Choice A is incorrect. The suggested requirement that an institution give advance notice of its intent to sell a significant amount of stock tends to discourage institutional stockholders from selling stock they believe will decrease in value since, according to the passage, such an announcement would cause the stock’s value to plummet (lines 33-36). Choice B is also incorrect. In lines 28-30, the author argues that insititutional stockholders should be “encouraged to take a more active role in the operations of the companies in which they invest.” The advance notice requirement discussed in lines 30-33 is proposed by the author as a means of fostering, not discouraging, institutional stockholders’ participation in the operation of the companies they invest in. Choice D is not the correct answer. The passage does not discuss ownership of company stock by that company’s employees. Choice E is also incorrect. The passage states only that institutions should be allowed to acquire “a dominant shareholding position in a corporation,” but it does not discuss whether investors should diversity their stock holdings by investing in different companies.
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GMAT VERBAL题库GMAT分类
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GMAT VERBAL
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