Market Participants

Qualified Institutional Buyer

Definition

What is Qualified Institutional Buyer?

A large institution meeting regulatory criteria to trade certain restricted securities.

Example in practice

An insurer qualifies to buy an institutional bond placement.

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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.

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