institutional investor

institutional investor

An entity such as an insurance company, an investment company, a pension fund, or a trust department that invests large sums in the securities markets. Institutional investing has had an increasing impact on securities trading: as the institutions buy and sell huge blocks of the same securities during short periods of time, large security fluctuations ensue.

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Institutional Investor

A business devoted to holding and managing assets, either for clients or for itself. Examples include mutual funds, banks, holding companies, and brokerages. Institutional investors are important to placing new issues of stocks and bonds, as they can afford to buy more of an issue than individual investors.

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Institutional investor. Institutional investors buy and sell securities in large volume, typically 10,000 or more shares of stock, or bonds worth $200,000 or more, in a single transaction.

In most cases, the investors are organizations with large portfolios, such as mutual funds, banks, university endowment funds, insurance companies, pension funds, and labor unions.

Institutional investors may trade their own assets or assets that they are managing for other people.

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institutional investor

A large corporate investor in real estate and real estate securities, such as a pension fund, university, or insurance company.