Institutional Investor

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What is an 'Institutional Investor'

An institutional investor is 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.

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.

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    There are a number of differences between institutional investors and non-institutional investors. If you are considering ... Read Answer >>
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    It is obviously not technically possible for any shareholder or category of shareholder to hold more than 100% of a company's ... Read Answer >>
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