Question

Which of the following​ is/are NOT corporate​ monitors?

A. Lenders

B. Security analysts

C. Securities and Exchange Commission

D. All of the above are corporate monitors.

Answer 1

All of them are corporate moniters in some how different ways.

a. Lenders who lends money to the corporates will check, assess the bank statements, financial position of the company on regular basis. Furthermore, they check the stock postions of the company of any diversion of funds taking place. If lenders gives long term loans, they check the project status on a regular basis whether funs are using for the same.

b.Security analysts moniter the corporate actions, financial results on quarterly and annual basis of the corporates to give the investment decisions to the investors. Security analysts who work for brokerage firms, mutual funds, hedgefunds, private equity firms etc. will mostly moniter the corporates.

c.Security and Exchange commissions will moniter the companies which are listed on the stock exchanges whether they are operating and disclosing the data with compliance. If corporates who don't adhere to the compliance set by them will be penalized. All these rules are set up by the commission to protect the investors interests in the financial markets.