Question

How the individual and institutional investors differ from each other? Explain.

Answer 1

Individual investors are basically investors who are non institutional , its like every person who busy and sells real estate,debt , equity and other investments through Banks, Brokers, or any other agents. They invest their own money rather than investing or managing or investing on behalf of others. Their investment decision are driven by oerosnal goals like Planning for Retirement or Children' s Education etc, Where as a Non Institutional invesotor are the Mutual Funds, Insurance companies, Investment Bankers, they can have tremendous influence on the stock market movements as they buy stocks in Bulk and make investment only after detailed analysis as they are knowledgeable m, they generally invest on behalf of others.