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Finance: What is an Institutional Investor? 1 Views
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What is an institutional investor? Hit play to find out
- Social Studies / Finance
- Finance / Financial Responsibility
- College and Career / Personal Finance
- Life Skills / Personal Finance
- Finance / Finance Definitions
- Life Skills / Finance Definitions
- Finance / Personal Finance
- Courses / Finance Concepts
- Subjects / Finance and Economics
- Finance and Economics / Terms and Concepts
- Terms and Concepts / Accounting
- Terms and Concepts / Banking
- Terms and Concepts / Bonds
- Terms and Concepts / Insurance
- Terms and Concepts / Investing
- Terms and Concepts / Marketing
- Terms and Concepts / Regulations
- Terms and Concepts / Stocks
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- Terms and Concepts / Wealth
Transcript
- 00:00
Finance a la shmoop what is an institutional investor? institution think
- 00:09
mutual fund company like fidelity or Wellington or State Street or Blackrock [Mutual fund companies appear]
- 00:14
also think hedge fund think giant pension fund or even a small one the
- 00:20
"institutional" part of this term means that the investor is a
- 00:26
professional they've likely gone to grad school taken a bunch of licensing exams
Full Transcript
- 00:31
are really good at math and accounting good at poker probably as well [Person checks cards on poker table]
- 00:34
apprenticed with old people who mumble through chewed cigars about what the IPO
- 00:39
of Ford was like with Henry that whippersnapper and those investors are
- 00:44
professionally responsible for managing OPM other people's money standards are
- 00:50
higher when you lose someone else's money versus your own
- 00:53
well the institution behind them raises and retains the dough which is they then [Investor receives cash]
- 00:57
invest often in large chunks and their viewed as a different class by many
- 01:02
because unlike the cardiologists investor Club of Northeast Milwaukee
- 01:07
these investors actually understand the risks they're taking when they invest so [Men stood outside cardiologist investor club sign]
- 01:13
if a given stock shows tens of thousands of hundreds share trades odds are good
- 01:18
that cardiologists and their friends are buying in on tips they got from the golf
- 01:23
course if the trade blocks are in hunks of a hundred thousand or a million [Stocks in a sack of million shares]
- 01:27
shares each per block that is odds are good that well these are schooled
- 01:32
institutions buying and selling shares with a presumption that the
- 01:36
institutional investors will generally know what they're doing or at least more
- 01:40
so than the you know non institutional getting there so why would you want to
- 01:44
be an institutional investor? answer = bank if you're good and very very few people [Man discussing institutional investors]
- 01:51
actually are but if you are one of the vaunted few the proud the knowledgeable
- 01:56
who beats the market regularly in good markets and bad and can do it at scale
- 02:02
on hundreds of millions or billions of dollars invested well then you can
- 02:06
expect to make tens of millions of dollars a year [Man throws cash into the air]
- 02:09
shepherding the wealth of the wealthy or at least of
- 02:12
masses collecting your fees and whining about taxes until the cows come home [Cows appear on a field]
- 02:16
when did they leave anyway?
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