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Finance a la shmoop what is an institutional investor? institution think

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mutual fund company like fidelity or Wellington or State Street or Blackrock [Mutual fund companies appear]

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also think hedge fund think giant pension fund or even a small one the

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"institutional" part of this term means that the investor is a

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professional they've likely gone to grad school taken a bunch of licensing exams

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are really good at math and accounting good at poker probably as well [Person checks cards on poker table]

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apprenticed with old people who mumble through chewed cigars about what the IPO

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of Ford was like with Henry that whippersnapper and those investors are

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professionally responsible for managing OPM other people's money standards are

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higher when you lose someone else's money versus your own

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well the institution behind them raises and retains the dough which is they then [Investor receives cash]

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invest often in large chunks and their viewed as a different class by many

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because unlike the cardiologists investor Club of Northeast Milwaukee

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these investors actually understand the risks they're taking when they invest so [Men stood outside cardiologist investor club sign]

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if a given stock shows tens of thousands of hundreds share trades odds are good

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that cardiologists and their friends are buying in on tips they got from the golf

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course if the trade blocks are in hunks of a hundred thousand or a million [Stocks in a sack of million shares]

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shares each per block that is odds are good that well these are schooled

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institutions buying and selling shares with a presumption that the

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institutional investors will generally know what they're doing or at least more

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so than the you know non institutional getting there so why would you want to

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be an institutional investor? answer = bank if you're good and very very few people [Man discussing institutional investors]

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actually are but if you are one of the vaunted few the proud the knowledgeable

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who beats the market regularly in good markets and bad and can do it at scale

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on hundreds of millions or billions of dollars invested well then you can

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expect to make tens of millions of dollars a year [Man throws cash into the air]

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shepherding the wealth of the wealthy or at least of

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masses collecting your fees and whining about taxes until the cows come home [Cows appear on a field]

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when did they leave anyway?

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