- Institutional investors and stock return anomalies - ScienceDirect
- What is an 'Institutional Investor'
- institutional investors
Institutional investors and stock return anomalies - ScienceDirect
In , it attracted the likes of legendary investor Warren Buffett and Berkshire Hathaway , who once famously derided the industry. Write to Vito J. Can institutional investing have anticompetitive effects? Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at or visit www.
What is an 'Institutional Investor'
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Customer Center Contact Us. All Rights Reserved This copy is for your personal, non-commercial use only. There are generally six types of institutional investors: Most institutional investors in the U. Retail investors can use these public filings to peek into what institutions are buying or selling each quarter. Institutional investors have the resources to do extensive research on wide-ranging investment options, and due to their specialized knowledge, they generally have an edge over retail investors.
Portfolio managers often meet personally with company executives, study entire industries, and evaluate companies in depth before making specific investment decisions. First, institutions are usually the largest force behind supply and demand in securities markets, thus they have a major influence of the prices of many securities.
The vast majority of the trading on major exchanges is done by institutions and it's important to note that because of the size of their portfolios, institutional buying and selling may greatly influence the price of a security. Institutional ownership of specific securities can be found on many financial websites or in Investor's Business Daily. The investor relations departments of public companies often disclose who their institutional shareholders are as well.
Some investors purposely seek investments with little or no institutional ownership, with the expectation that institutions will soon "discover" the security and push the price up. Our in-depth tools give millions of people across the globe highly detailed and thoroughly explained answers to their most important financial questions.