Institutional Investor


DEFINITION of 'Institutional Investor'

A non-bank person or organization that trades securities in large enough share quantities or dollar amounts that they qualify for preferential treatment and lower commissions. Institutional investors face fewer protective regulations because it is assumed that they are more knowledgeable and better able to protect themselves.


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BREAKING DOWN 'Institutional Investor'

Watching what the big money is buying can sometimes be a good indicator, as they (supposedly) know what they are doing. Some examples of institutional investors are pension funds and life insurance companies.

  1. Investment Banker

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  3. Qualified Institutional Buyer - ...

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  4. Block Trade

    An order or trade submitted for sale or purchase of a large quantity ...
  5. Elephants

    Slang for large institutions that have the funds to make high ...
  6. Iceberg Order

    A large single order that has been divided into smaller lots, ...
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