• An institutional investor is a company or organization that invests money on behalf of clients or members.

  • Hedge funds, mutual funds and endowments are examples of institutional investors.
  • Institutional investors are considered smarter than the average investor and are often subject to less regulatory oversight.
  • The buying and selling of large positions by institutional investors can lead to an imbalance in supply and demand, leading to sudden changes in the price of stocks, bonds or other assets.
  • Institutional investors are the big fish on Wall Street.