Mike asked in Business & FinanceInvesting · 1 decade ago

Individual vs. Institutional Investor?

Is there a benefit to organizing my personal investments of stocks, bonds, mutual funds, notes, etc. into an LLC. instead of just owning them as a personal investor?

2 Answers

  • 1 decade ago
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    An Institutional Investor is generally a government, a pension fund, a mutual fund company, or other large investing "unit" that invests many millions of dollars. Even if you did put your assets into an LLC (unless those assets are many millions of dollars) you would still be considered an Individual Investor and not an Institutional Investor. Of course Bill Gates or Warren Buffet could be considered Institutional Investors due to their many billions of dollars.

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  • 4 years ago

    An individual investor is a single person, such as yourself. An institutional investor is someone who invests on the behalf of an institution such as a bank, pension funds, mutual funds, etc. Institutional investors have far more pull in the market since they buy and sell much larger volumes of stock. It is the institutional investors that really drive prices up or down, not the individual investor.

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