Define: Institutional Investor

UK Accounting Glossary

Definition: Institutional Investor


Quick Summary of Institutional Investor


An organisation whose business includes regular investment in shares of companies, examples being an insurance company, a pension fund, a charity, an investment trust, a unit trust, a merchant bank.



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Full Definition of Institutional Investor


An institutional investor is an organization that trades securities for investment purposes. An institutional investor can make investments utilizing its own assets. In addition, an institutional investor may invest on behalf of others with whom it has a fiduciary relationship. Investment companies, pension funds, mutual funds, insurance companies, and other organized investment entities may all be placed under the institutional investor category. Institutional investor organizations may even include endowments, charities, and universities. Institutional investor establishments hire professional analysts and advisors in order to hedge risk and generate stable returns. Because institutional investor firms generally operate with substation capital and trade in high volumes, they often tend to influence stock prices and company policies. A typical institutional investor is far less restricted in market action than an individual investor.


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Synonyms For Institutional Investor


financial institution, finance company, corporate investor


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Modern Language Association (MLA):
Institutional Investor. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. February 24, 2020 https://payrollheaven.com/define/institutional-investor/.
Chicago Manual of Style (CMS):
Institutional Investor. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/institutional-investor/ (accessed: February 24, 2020).
American Psychological Association (APA):
Institutional Investor. PayrollHeaven.com. Retrieved February 24, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/institutional-investor/

Definition Sources


Definitions for Institutional Investor are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • BusinessDictionary.com
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 23rd December 2018.