7 Replies to “How much influence does the Institutional Investors have in controlling stock prices?”

  1. much influence, I would correct above answerer Rampal they enter market before common public and exit before common public.

  2. Huge.

    Institutions count for the majority of daily trading volume. Unlike most individuals who operate in the market virtually blindly.

    Institutions react to news and data without hesitation, often via “flash trading” (which is not the same as HFT – High Frequency Trading), and separately use program trading that has pre-calculated risk/ reward, return, etc and numerious other scenarios based on such data, and that result can influence stock prices.

    Correction on other posts.
    Intuitions can enter the market, before, during, after and trade with each other without entering the market at all.

    One doesn’t see a mutual fund buying or selling 10-100 million shares of stock in a single order. This would move the market. There are many ways to execute these transactions without signaling your intent.

    edit: This is the correct answer.

  3. Institutions are the dog, individuals are the fleas.

    If the way individuals move in and out of a stock were sound it would be a lot of static. Some go in at the same time others are going out, all with different time frames. There is some herding that would move the price up and down but to use anther analogy individuals are the cleaner fish darting in or out around where ever the whales move the price. You take a position in a stock in one or two bites. Institutions take a lot of bites over some weeks till they have their full position.

  4. Domestic institutional investors make less influence than the foreign institutional investors.
    Both play key roll in fluctuations

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