What is the difference between institutional and retail investors?

[frederick_9]

An individual or amateur investor who purchases and sells stocks through brokerage companies or savings accounts like 401(k)s is known as a retail investor.
Institutional investors invest other people's money on their behalf rather than using their own.

 

[Bigron]

Understanding the difference between institutional investors and retail investors can be very helpful in the world of stocks.
Institutional investors as representatives of companies that have large funds, their number acquires three-quarters of the trading volume on the New York Stock Exchange. They move a large number of stocks and have a tremendous influence on the movement of the stock market. Whereas retail investors are investors other than institutional or individual, their motivation and sources of funds come from themselves or private property. According to the SEC, retail investors are considered less sophisticated. Hence, they need to be given certain protections and are prohibited from making complex and risky investments. This is the only difference between institutional and retail investors that I know of, I hope you will go into more detail to complete this thread.

A retail investor is a personal investor who invests in and trades stocks through brokerages or checking accounts whiles a person that trades stocks in substantial volumes to qualify for special consideration and cheaper fees is referred to as an institutional investor.