Question

43. ***A major difference between individual and institutional investor is their very different:

A. approaches to market analysis

B. contribute liquidity to the market

C. engage mainly in short sales

D. serve no real economic function





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Answer 1

Unlike individual investors who buy stocks in publicly traded companies on the stock exchange, institutional investors purchase stock in hedge funds, pension funds, mutual funds, and insurance companies. They also make substantial investments in the companies, very often reaching millions in dollars in value. or

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.

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