1-Which is not correct? Since insurance companies, pension funds, and some mutual funds are major investors in stocks, they can influence the management of publicly traded firms. By serving as passive shareholders, they can help ensure that managers of publicly held corporations make appropriate decisions that are in the best interests of the shareholders. Several agencies regulate the various types of financial institutions, and the various regulations may give some financial institutions a comparative advantage over others. Financial institutions facilitate the flow of funds from individual surplus units (investors) to deficit units. Since insurance companies, pension funds, and some mutual funds are major investors in stocks, they can influence the management of publicly traded firms. By serving as passive shareholders, they can help ensure that managers of publicly held corporations make appropriate decisions that are in the best interests of the shareholders. Several agencies regulate the various types of financial institutions, and the various regulations may give some financial institutions a comparative advantage over others. Financial institutions facilitate the flow of funds from individual surplus units (investors) to deficit units..