Institutional Investors

Knowledge Center

   

Description of Institutional Investors. Explanation.

Contents

  1. Summary
  2. Forum
  3. Best Practices
  4. Expert Tips
  5. Resources
  6. Print
 

Definition Institutional Investors. Description.


Institutional Investors are large, professional participants to the financial markets, such as:

  • Pension funds

  • Investment banks

  • Fund-management companies

  • Insurance companies

  • Hedge funds

  • Mutual funds

  • Trusts (charity, religion, education, endowment)

These organizations hold somewhere between 40% to 75% of all equities in most capital markets. Typically they invest with a (very) long-term perspective (10-50 years), based on a previously crafted formalized strategy, such as maintaining a certain portfolio / composition of shares. See rebalancing. Because they are believed to be more knowledgeable and better able to protect themselves using portfolio insurance, they face less protective regulations. Because they trade securities in large volumes, they often get preferential treatments (lower commission fees) from investment banks and from the capital markets, which they often own as well. As a result they clearly have a competitive advantage when it comes to buying and selling securities.


Under normal circumstances, they are believed to have a stabilizing effect on the capital markets and on the economy as a whole.


Institutional Investors Forum
  Quotes on Institutional Investors. Quotations
Hi, do you know of a remarkable, humorous quote by a famous person or a proverb related to institutional investors?
Please enter a reaction to share it for other people to enjoy! Please use this template:
Author Name Year of Birth - Year of Dea...
     
 

Institutional Investors Special Interest Group


Special Interest Group

 

Best Practices - Institutional Investors Premium

Expert Tips - Institutional Investors Premium

Resources - Institutional Investors Premium

Giving Financial Advice on Dealing with Uncertainty

Harry Markowitz gives short answers two questions:
1. (How) can financial advisors help participants deal with uncertainty?
2. How do you bl...
Usage (application): Financial Services, Asset Management, Financial Investing
 
 

News

Institutional Investors
     
 

Videos

Institutional Investors
     
 

Presentations

Institutional Investors
     
 

More

Institutional Investors
     

Special Interest Group Leader

You here


 

Return to Management Hub: Finance & Investing  |  Knowledge & Intangibles  |  Leadership


More on Management  |  Return to Management Dictionary  | 

 

This ends our Institutional Investors summary and forum.

About 12manage | Advertising | Link to us | Privacy | Terms of Service
Copyright 2016 12manage - The Executive Fast Track. V14.1 - Last updated: 9-12-2016. All names tm by their owners.