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What is the definition of Institutional Investors?

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Institutional Investors are organizations that invest in large quantities. This usually refers to insurance companies, investment houses, pension funds and banks that buy and sell a large number of securities and other investment instruments.

An institutional investor gathers buying and negotiating power by pooling financial contributions from a lot of people. The institutional investor makes the investment in behalf of those who entrusted their investments to them - be it by premiums, pension fund collections and other kinds of investments. Because of the size of the funds they are handling, institutional investors are able to have a diverse portfolio in order for them to build a strong financial position.

The institutional investors account for over two-thirds of the trades in any one point in time.

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