The author suggests that which of the following is a true statement about people who typify the “old style capitalist" referred to in line**?
The author suggests that which of the following is a true statement about people who typify the “old style capitalist" referred to in line**?
The correct option is B They seldom engaged in short-term trading of the stock they owned.
To answer this question, you must use information contained in the passage to infer something about the “old-style capitalist” referred to.
The best answer is B. According to the lines of the passage, the individual capitalists of the past, referred to later in the passage as “old-style” capitalists , could not “sell out for a quick profit” because doing so would depress the value of their stocks. From this statement, it can be inferred that someone who typifies the “old-style capitalist” would be unlikely to engage in short-term stock trading.
Choice A is incorrect. A comparison between the old-style capitalists and their modern counterparts is made in the passage, but the passage does not express an opinion about whether or not the management techniques used by these capitalists are outdated.
Choice C is not the correct answer. The passage does not discuss the investment policies of the corporations in which financial institutions invest.
Choice D is also incorrect. According to the passage ,the old-style capitalists were individual investors, not large institutions. While the passage stats that large institutions are affected by anti-trust legislation, it says nothing about whether this legislation affects individual investors. In addition, the passage does not mention anything about how great a role individual investors now play in the stock market.
To answer this question, you must use information contained in the passage to infer something about the “old-style capitalist” referred to.
The best answer is B. According to the lines of the passage, the individual capitalists of the past, referred to later in the passage as “old-style” capitalists , could not “sell out for a quick profit” because doing so would depress the value of their stocks. From this statement, it can be inferred that someone who typifies the “old-style capitalist” would be unlikely to engage in short-term stock trading.
Choice A is incorrect. A comparison between the old-style capitalists and their modern counterparts is made in the passage, but the passage does not express an opinion about whether or not the management techniques used by these capitalists are outdated.
Choice C is not the correct answer. The passage does not discuss the investment policies of the corporations in which financial institutions invest.
Choice D is also incorrect. According to the passage ,the old-style capitalists were individual investors, not large institutions. While the passage stats that large institutions are affected by anti-trust legislation, it says nothing about whether this legislation affects individual investors. In addition, the passage does not mention anything about how great a role individual investors now play in the stock market.
