An asset manager is choosing between buying shares in a publicly traded retailer and a stake in a private retail partnership. The fund’s mandate requires monthly portfolio rebalancing. Why is the corporation preferred?

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Institutional mandates often require high liquidity; corporate stock can be sold in seconds on an exchange, whereas partnership stakes involve legal delays.

An asset manager is choosing between buying shares in a publicly traded retailer and a stake in a private retail partnership. The fund’s mandate requires monthly portfolio rebalancing. Why is the corporation preferred?

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