Pension funds, mutual funds, banks, and other financial entities hold shares in companies. These shares represent ownership in the company, entitling shareholders to a portion of its profits and a say in its decision-making. These institutional investors play a crucial role in the stock market, diversifying their portfolios and providing stability to the market. They also have a responsibility to their clients and shareholders to make informed and profitable investment decisions. Understanding the role of institutional investors is essential in comprehending the intricacies of the finance world.
