Institutional investors are organizations that invest large sums of money on behalf of their members or clients. These entities include pension funds, insurance companies, and mutual funds, which pool resources to invest in various assets such as stocks, bonds, and real estate. Their significant financial power allows them to influence market trends and corporate governance.
These investors play a crucial role in the financial markets by providing liquidity and stability. They often have access to exclusive investment opportunities and can negotiate better terms due to their size. As a result, institutional investors are key players in shaping the investment landscape.