Market Participants

Institutional Investor

Definition

What is Institutional Investor?

An organisation that invests large pools of money on behalf of beneficiaries or clients.

Example in practice

Pension funds, insurers, and mutual funds are institutional investors.

Keep learning

A person or firm that executes securities transactions for clients.

A person or firm that buys and sells securities for its own account.

A firm that acts as an agent for clients and as a principal in its own trades.

The highest price a buyer is currently willing to pay for a security.

Think you know your investing terms?

Put your knowledge to the test with a quick quiz.