BUSINESS ADMINISTRATION
STRATEGIC MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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True
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False
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Detailed explanation-1: -An institutional investor buys, sells, and manages stocks, bonds, and other investment securities on behalf of its clients, customers, members, or shareholders.
Detailed explanation-2: -While institutional investors are selling stocks, retail investors are buying.
Detailed explanation-3: -After some institutions (e.g., mutual funds and hedge funds) establish a position in a stock, their next move is to tout the company’s merits to the sell side. Why? The answer is to drive interest in the stock and to boost share price value.
Detailed explanation-4: -Typically, institutional investors look for investments that are stable, predictable, and contain a reasonably compensated level of risk. They will use large teams to make decisions, identify opportunities, and carefully construct their portfolios.