Posted in Finance, Accounting and Economics Terms, Total Reads: 617
Definition: Institutional Investors
Institutional investors are organizations that invest in large amounts in diversified securities like shares, real estate, etc. Examples of these investors are banks, pension funds, big companies having excess profit and cash and looking for investments, etc.
These investors invest in large amounts and hence they get entitled to preferential treatment and lower operational costs. The regulatory framework for the institutional investors are less stricter as they are expected to be more knowledgeable in the financial field thus making them better managers of risk and returns of their funds, that are mostly public deposits.