An Institutional Investor is an organization that invests large sums of money on behalf of its members or clients. These investors include entities like pension funds, insurance companies, mutual funds, and endowments. They play a significant role in the financial markets by providing liquidity and stability through their substantial investments.
Institutional investors typically have access to more resources and information than individual investors, allowing them to make informed decisions. They often invest in a diverse range of assets, including stocks, bonds, and real estate, and their investment strategies can significantly influence market trends and valuations.