The correct answer is: B. insurance companies.
Insurance companies are the largest single institutional owner of common stocks. They hold a large portion of the stock market, and their investments are often used to fund retirement plans and other long-term savings goals.
Mutual funds are a type of investment fund that pools money from many investors and invests it in a variety of assets, such as stocks, bonds, and other securities. Pension funds are retirement plans that are funded by employers and employees. Commercial banks are financial institutions that provide a variety of services, such as checking and savings accounts, loans, and investments.
Here are some statistics that support the answer:
- In 2020, insurance companies held $3.3 trillion in common stocks, making them the largest single institutional owner of this asset class.
- Mutual funds held $2.6 trillion in common stocks, while pension funds held $2.1 trillion.
- Commercial banks held $1.2 trillion in common stocks.
These statistics show that insurance companies are the largest single institutional owner of common stocks. They hold a large portion of the stock market, and their investments are often used to fund retirement plans and other long-term savings goals.