Institutional investors refer to the individual entities and organizations that take trade within the market on behalf of their clients who are retail investors. Institutional investors are often referred to as ‘elephants’ within the stock market, given their profound influence on the price actions due to high volume trades.
With the sheer capital used by institutional investors, they have the ability to trade at high volumes, drastically affecting the price discovery mechanism while contributing to market growth. Given their legal obligations and experience over the years, institutional investors are one of the most prominent market movers.
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