An institutional investor is a large investor such as an insurance company, a pension fund, a mutual fund, or a major investment firm. Institutional investors often trade large blocks of stocks or even whole sectors. They are professionally managed.
Institutional investors often find it impractical to invest in small cap stocks. Small caps can be too small to trade in the quantities needed to be of significance to an institutional account. That is one reason they might invest in a sector rather than in a individual stock. Large caps, real estate, and commodities fit better with their goals.
Related Fool Articles
- [link link title]
Recent Mentions on Fool.com
- How One Stock Has Crushed the Competition For 10 Years Running
- Following Hepatitis C, This Could Be the Next Disease Researchers Cure
- Digital Federal Credit Union: Traditional Banking Convenience with Credit Union Benefits
- Traditional Bank vs. Credit Union vs. Online Bank
- Why a CEO Pay Cut Is Bad News
- 3 Types of Risks Facing Biotech Stocks