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Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Institutional Investor

Definition:

An institutional investor is either someone who trades for themselves or others in insane amounts.

These folks get VIP perks from brokerages and can usually take care of exempt transactions with less hoopla. They pretty much prove that size does matter.

On the other hand, institutional investors get less protection legally from the U.S. government compared to individual investors like, uh, you. The idea is that they need less protection.