Institutional Investor

An institutional investor is an organization, such as a bank, insurance company, pension fund, or mutual fund, that invests large sums of money on behalf of its clients or members. Unlike individual investors, institutional investors have significant resources and expertise, allowing them to manage investments more effectively. They play a crucial role in the financial markets by providing liquidity, helping to determine prices, and influencing investment trends. Their large transactions can impact stock prices and market stability, making them key players in the economy.