• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
  • Home
  • About Us
  • Budget
  • Business
  • Lifestyle
  • Health
  • Home & Garden
  • News
  • Online Magazine
  • Success
  • Contact Us

Piccolo Universe

Piccolo Universe

  • Did you know that hanging family photographs in your home can improve your children’s confidence? Photos of your kids (and your entire family) prominently displayed in your home communicate that you value them and that they are important family members. The photos let them know they are seen. Not only that, but family photos on… [Continue Reading]

    Read More

    How to Create a Family Photo Wall in Your Home
  • Lavender is a member of the Lamiaceae family and is a perennial herbaceous plant. It grows across the world’s temperate regions, including Europe and North America. The lavender plant can grow up to 2 feet tall. It has gray-green leaves that are oval in shape. The flowers are usually purple, but they vary in color… [Continue Reading]

    Read More

    What You Need to Know About Lavender Plant 
  • Sewers facilitate proper waste disposal from buildings to the designated points to maintain a clean and healthy space. The whole system is designed so that it doesn’t interfere with the comfort of the building dwellers and helps the waste management teams function well. Sewer lines cause a lot of havoc to individuals since it spreads… [Continue Reading]

    Read More

    Quality And Reliable Sewer Services For Various Buildings 
  • During the past 10 years, people all over the world have become increasingly receptive to blockchain and cryptocurrencies. Initially, cryptocurrencies were viewed as a serious threat to both local fiat money and governments. However, many former crypto opponents are now pushing for its adoption after witnessing its many benefits, according to Dan Schatt and Domenic… [Continue Reading]

    Read More

    Earnity Expert Dan Schatt: Crypto Is Expected to Grow Even More in 2022, and Here’s Why
  • For small business owners, figuring out how to accept mobile payments can be overwhelming. Fortunately, that’s where Earnity, a new cryptocurrency marketplace, comes into play, according to Dan Schatt and Domenic Carosa, the fintech experts at the marketplace. Here is a rundown on why mobile payments matter in business and how the platform can help… [Continue Reading]

    Read More

    Dan Schatt: Earnity Helps Businesses to Capitalize on Mobile Payments

January 28, 2022

Institutional Investors: What They Are & What They Do

An institutional investor is not actually one person. In fact, institutional investors are often organizations or companies that are investing a large amount of money on behalf of a group of people.

Mutual funds, pensions, endowments, and insurance companies are examples of institutional investors. Due to the sheer size of the trades many institutional investors carry out, they can sometimes move the market – depending on how volatile of an asset they are investing in.

The main thing that sets institutional investors apart from retail investors is the size of the trades institutional investors carry out. We’re going to talk about what it means to be an institutional investor in the first half of the article, and then the specific types of institutional investors in the second half.

Large Investments

Due to the fact that institutional investors have a larger amount of financial assets at their disposal, they can invest large sums of money into the stock market. For example, an institutional investor bought $100 million of preferred stock in this article here.

In fact, institutional investors own just about 80% of the market capitalization. It’s such a large portion of the market, that retail investors actually research institutional investor’s various strategies to see how they will impact the market.

Many institutional investors will not buy stock in small companies for this reason. While a substantial purchase of stock in an established company may move the stock price a little, a purchase of stock in a small company could completely disrupt the valuation of the company.

Regulations

While there are often many regulations that come with trading for retail investors, such as how much money you’re allowed to invest, and what you can invest in. Institutional investors face far less restrictions and regulations than retail investors because they are more knowledgeable about the market.

For example, institutional investors are allowed to conduct much larger trades, such as Block Trades, than retail investors can.

Types of Institutional Investors

There are five main types of institutional investing that we will go over in the second part of this article: Pension funds, insurance companies, investment companies, saving institutions, and foundations.

Pension funds

Being the largest institutional investor type, pension funds had over $56 trillion in assets in 2020. Pension funds handle money in retirement accounts, and invest them to grow the money.

Investment Companies

Investment companies are the second largest type of institutional investor, and they handle the money of various banks and individuals looking to invest their cash.

Insurance Companies

Private insurance companies in the U.S take in money from their clients and hold it for when they need to pay a premium back to their clients. While they hold the cash however, they invest it in various stocks and financial assets, making insurance companies a large institutional investor.

Savings Institutions

Savings Institutions accounted for just over $1 trillion dollars in 2019, and are institutional investors as well. Savings institutions must put the majority of their assets in very low risk investments.

Foundations

The smallest type of institutional investing is foundations. They are created by a few wealthy companies or families in most cases, and have a specific purpose.

Conclusion

Institutional investors are organizations and companies, not individual people. They control a substantial portion of the equity market, around $90 trillion dollars. They invest large sums of money at a time, and can typically move the market when buying.

To read more on topics like this, check out the Business category

Filed Under: Business

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

About Us

Hey guys it’s Adam! I am a writer, a blogger, and a curious human being full of ideas. I remember as a teenager going to my local store to grab a freshly published magazine about the ins and outs of the online business world. Read More…

Facebook

The Piccolo Universe

Lets Connect

  • Facebook
  • Instagram
  • Twitter

Newsletter

How to Create a Family Photo Wall in Your Home

What You Need to Know About Lavender Plant 

Footer

About Us

Hey guys it’s Adam! I am a writer, a blogger, and a curious human being full of ideas. I remember as a teenager going to my local store to grab a freshly published magazine about the ins and outs of the online business world. Read More…

Popular Post

How to Create a Family Photo Wall in Your Home

Newsletter

Copyright© 2023 · Dear Theme Piccolo Universe