Institutional Investor

What Does Institutional Investor Mean?
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.

Investopedia explains 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.

Filed Under: Insurance, Stocks

Related Terms

Block Trade
Elephants
Iceberg Order
Institutional Shares
Investment Banker
Market Overhang
Qualified Institutional Buyer - QIB
Retail Investor
Stock And Warrant Off-Balance Sheet R&D - SWORD
Warren Buffett
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What's the difference between institutional and non-institutional investors?
Why are insitutional holdings sometimes listed as higher than 100%?
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