What is an institutional investor? Seems like a
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Posted On: 02/17/2025 6:51:41 PM
What is an institutional investor?
Seems like an Inst investor would not be another pharma...
From the Street:
The term “institutional investor” refers to an entity or organization (like a bank, pension fund, or insurance company) — that invests substantial sums of money in the securities marketplace on behalf of its constituents (members, clients, customers, etc.).
Institutional investment entities are run by savvy professionals who have the best possible data at their fingertips, so where they go, ordinary investors and analysts follow. Additionally, some institutional players are accredited, which allows them access to unregulated securities that are out of reach for the average investor.
Why are institutional investors important? How do they impact the market?
Institutional investors are the movers and shakers of Wall Street — since they buy and sell stocks and other financial instruments in massive amounts, their trading decisions have a far more noticeable impact on asset prices than those of retail investors.
For instance, if a large institutional investor sells 200,000 shares of Stock A, supply suddenly increases relative to demand, driving the price of the stock lower. If the same investor buys 200,000 shares of Stock B, supply suddenly decreases relative to demand, driving the stock’s price higher. When many institutional investors make similar trades over a short period of time, the resulting price swings can be dramatic.
Reuters reported in 2021 that, according to a spokesperson at Morgan Stanley, retail investors were responsible for only 10% of the trading volume on the Russel 3000 (a benchmark of the U.S. stock market), indicating that the remaining 90% was accounted for by institutions.
By and large, institutional investors control most of the action on Wall Street.
10 common types of institutional investors
Banks/credit unions
Mutual funds
Hedge funds
Venture capital funds
Pension funds
Endowment funds
Commercial trusts
Real estate investment trusts (REITs)
Insurance companies
Charities
Seems like an Inst investor would not be another pharma...
From the Street:
The term “institutional investor” refers to an entity or organization (like a bank, pension fund, or insurance company) — that invests substantial sums of money in the securities marketplace on behalf of its constituents (members, clients, customers, etc.).
Institutional investment entities are run by savvy professionals who have the best possible data at their fingertips, so where they go, ordinary investors and analysts follow. Additionally, some institutional players are accredited, which allows them access to unregulated securities that are out of reach for the average investor.
Why are institutional investors important? How do they impact the market?
Institutional investors are the movers and shakers of Wall Street — since they buy and sell stocks and other financial instruments in massive amounts, their trading decisions have a far more noticeable impact on asset prices than those of retail investors.
For instance, if a large institutional investor sells 200,000 shares of Stock A, supply suddenly increases relative to demand, driving the price of the stock lower. If the same investor buys 200,000 shares of Stock B, supply suddenly decreases relative to demand, driving the stock’s price higher. When many institutional investors make similar trades over a short period of time, the resulting price swings can be dramatic.
Reuters reported in 2021 that, according to a spokesperson at Morgan Stanley, retail investors were responsible for only 10% of the trading volume on the Russel 3000 (a benchmark of the U.S. stock market), indicating that the remaining 90% was accounted for by institutions.
By and large, institutional investors control most of the action on Wall Street.
10 common types of institutional investors
Banks/credit unions
Mutual funds
Hedge funds
Venture capital funds
Pension funds
Endowment funds
Commercial trusts
Real estate investment trusts (REITs)
Insurance companies
Charities
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Lamont
#1 30.58333 114.26667
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Lamont
#1 30.58333 114.26667
#2 39.002744, -77.103470