What is the difference between institutional and retail investors?

[Chris]

An institutional investor is a person or an organization that trades stocks in large quantities which qualifies for preferential treatment and lower fees, they also make substancial investment in the company while a retail investor is a person or a non-professional investor who buys stocks in publicly traded companies, brokerage firms or savings accounts.

 

[Mawome]

A retail investor is just an individual who buys maybe directly from the company and sell to consumers, just as the name implies, institutional investors is an organization of investors, most times they borrow money from banks to invest to pay back later with their profit.

 

[Oliver 20]

An institutional investor is an individual or association that exchanges protections enormous enough amounts that it meets all requirements for special treatment and lower expenses. A retail investor is an individual or non-proficient financial specialist who purchases and sells protections through business firms or investment accounts

 

[Zamaney]

institutional investor is a person or organization that trades securities in large enough quantities that it qualifies for preferential treatment and lower fees. A retail investor is an individual or non-professional investor who buys and sells securities through brokerage firms or savings accounts

Post automatically merged: Jan 31, 2021

institutional investor is a person or organization that trades securities in large enough quantities that it qualifies for preferential treatment and lower fees. A retail investor is an individual or non-professional investor who buys and sells securities through brokerage firms or savings accounts

 

[Caali]

Institutional investors, on the other hand, are, well, institutions that invest, such as hedge funds, pension funds, family offices, private equity funds, venture capital funds, high frequency trading firms, etc.

 

[ranaabubakar263]

Retail traders, often referred to as individual traders, buy or sell securities for personal accounts. Institutional traders buy and sell securities for accounts they manage for a group or institution.Institutional traders have the ability to invest in securities that generally are not available to retail traders.

 

[Akinwale701]

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.

Institutional investment may. Refer to a situation whereby an institution or a company decides to take up a particular investment option, retail investment on the other hand may refer to an individual person who takes investments options in an investment company. I'll be on the comment sections whether I'm right or wrong.

 

[Kiko]

Institutional investors differ from retail investors in the size and frequency of their trades. The size of these trades — which currently comprise about 82.5% of the market — gives institutional investors power not available to smaller investors. Another key difference is that institutional investors act as stewards of their clients’ funds, like when a bank works to safeguard deposits or a pension fund ensures that it can fund the retirement of its clients. Retail investors tend to be individuals who more than likely earn middle-class incomes. And unlike institutional investors, they typically manage their own money, often in retirement or education funds.

 

[Blue house]

A retail investor is an individual or non-proficient financial backer who purchases and sells protections through financier firms or bank accounts.
Institutional investors don't utilize their own cash, yet they rather put use others' people cash for their benefit.

 

[Carson20t]

Thanks for this information it is quite handy. I have learnt some tips on how these investors are categorized and the opportunities people are given based on being a type of investors. Its very interesting to learn about opportunities on the stock market irrespective the cash volume you have.

 

[Hopey]

Retail investors are individual that are not connected to any institution or organization that can be a source of funding. They fund come from their personal money

 

[Cash%]

A retail investor is an individual or non-professional investor who buys and sells securities through brokerage firms or savings accounts like 401(k)s. Institutional investors do not use their own money, but rather invest other people's money on their behalf

I think the retail investors are the ones that actually buys large securities from the brokerage firm and still sell in small quantities to customers

 

[btaliat]

In stock exchange market, you have retail investors that buy shares with the aim to resell the shares maybe layer while the institutional investors may mean some firms a large company buying shares

 

[Cash%]

Yeah

In stock exchange market, you have retail investors that buy shares with the aim to resell the shares maybe layer while the institutional investors may mean some firms a large company buying shares

And most times the retail investors usually buy more quantity from the institutional investors for the sake of reselling and getting more profit

 

[Bousine123]

Don't know much about these types of investors but I think you have said enough to break it down for us. Thank you for this thread my friend.

 

[Hojo]

Am a newbie in stocks have heard of retail investor which can also mean the day traders but ion know about the institution investor , and I would love to know more

 

[Hojo]

Am a newbie in stocks have heard of retail investor which can also mean the day traders but ion know about the institution investor , and I would love to know more

 

[justija]

Retail investor if am given permission I should also call them traders , set of people who aim to make thier profit daily without taking time

 

[HayKay]

This is quite great. I got to understand this when I was seeking for employment from a banking firm. Retail investing is quite more tedious and more people are involved in it than are found in institutional investment.

 

[tyrim88]

Well it is very important that the interest of the retail investor is adequately protected,that will go a long way to show that they are not pushed out of the market,because their volume of trade is on the low side.