SIE Exam Question 151: Answer and Explanation

Question: 151

Which of the following are considered institutional investors?

• A. A governmental entity
• B. An employee benefit plan that meets the requirement of Section 403(b) or Section 457 of the Internal Revenue Code and has at least 100 participants
• C. A qualified plan as defined in Section 3(a)(12)(C) of the Exchange Act and that has at least 100 participants
• D. All of the above

Correct Answer: D

Explanation:

A governmental entity, an employee benefit plan that meets the requirement of Section 403(b) or Section 457 of the Internal Revenue Code and has at least 100 participants, and a qualified plan, as defined in Section 3(a)(12)(C) of the Exchange Act, that has at least 100 participants are all considered institutional investors.