Hall company had large amounts of funds to invest on a temporary basis. The board of directors decided to purchase securities and derivatives and assigned the future purchase and sale decisions to a responsible financial executive. The best person or persons to make periodic reviews of the investment activity would be :

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Business

Luciano Travis

5 August, 22:37

Hall company had large amounts of funds to invest on a temporary basis. The board of directors decided to purchase securities and derivatives and assigned the future purchase and sale decisions to a responsible financial executive. The best person or persons to make periodic reviews of the investment activity would be :

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Answers (1)

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Mauricio Reyes · Answer 1

Investment committee or Board of Directors

Explanation:

Because the other in investment team together with finance team are directly involved in investment activities, they may not objectively review their jobs rather than an independent team.

This independent team should be in higher positions who can manage or adjust the jobs of investment team. Thus many corporations set up an investment committee or assign BOD ("board of directors) to periodically review the company's investment activity to make sure they're still aligning with the company's target.