/ Institutional investors, their differences.

Institutional investors, their differences.

Investors buy and sell securities.By investing their money in stocks, they (with increasing their value) sell these securities more expensively, which brings investors a tangible income. Acquired securities under the laws of the Russian Federation are their property. Investors can be:

  • joint-stock companies;

  • individuals;

  • collective investors;

  • state.

There are investment companies that, when issuing their securities, attract money from individuals and legal entities.

The stock market of Russia is increasingcollective investment, it grows with the improvement of such a market. Mutual investment funds, collecting money from small buyers, unite them. Further, they acquire shares and sell them at a price increase, thereby increasing the income of depositors. These are so-called mutual funds.

On the basis of investors can be classified:

Institutional investors
- institutional investors. They are the largest in the financial market, they are the main participants, bringing into circulation "long money".

-large state funds "Sovereign". They govern in their essence state money. Many of them have huge assets. These are Norwegian Fund-Global, SAMA, SAFE, Temasek, etc.

- mutual funds are managed by investment companies;

- insurance. Invest money in securities from insurance premiums received as profits from insured customers;

- banks usually sell their free money on the financial market, buying up bonds and other liquid securities;

- pension, where pension contributions of citizens are invested.

These are all institutional investors.

Investors in the securities market are their owners on the basis of ownership.

Investors in the securities market
Working in the stock market, such an investor can choose either aggressive tactics of work, or conservative.

Strategic investors can be called those,that form a certain portfolio of shares for a long time. For the most part, they seek to acquire a controlling stake in one or more enterprises.

Speculative, which act on a short-term basis. They sell shares for a short period of time, extracting profits from this in the shortest possible time.

Professionally engaged in trading valuablesecurities of the person having an impressive capital. Institutional investors have access to capital, so they are professional players in the stock market.

Qualifying investors
Qualified investors are a special typeprofessionals with experience in the securities market and knowledge in this field. They have impressive capital. Professionally assess all kinds of risks. Invest their assets in risky businesses. Prefer stocks of mutual funds, hedge funds, credit, private equity funds, venture capital. All of the above are rather risky and not reliable in nature.

Institutional investors prefer a minimal risk with their investments, counting their work on a long-term basis.

Studies have shown that financial services were the most attractive for citizens. They preferred 51% of investors. 35% preferred retail trade, 14% - production.