From the course: Behavioral Finance Foundations

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Institutional and retail investors

Institutional and retail investors

From the course: Behavioral Finance Foundations

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Institutional and retail investors

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- There are two major types of investors: retail investors, and institutional investors. People, like you or me, are retail investors. Companies, like Fidelity or Vanguard, are institutional investors. All investors fall into one of those two categories: retail, or institutional. But different types of investors behave differently towards stocks, and that in turn affects prices. Let me show you a tool that you can use to figure out who's investing along side you in a company. So I'm here on the Yahoo Finance website, and I've pulled up the holders tab as you can see. And what this data shows us is that for Microsoft, almost 75% of their shares, three out of four shares, are held by institutions, by big companies. The top holders, Vanguard, Blackrock, State Street, T Rowe Price, and others. Now, of course to be fair, all of those top holders, Vanguard, Blackrock, etc., they all have clients of their own. People who have…

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