Review on Institutional Investor by francis fernandez
boosting credit management
The devaluation of money is a reality that investors must face permanently. Due to this situation, companies that manage capital look for alternatives to protect their money from the volatility of the world stock market.
Institutional Investor is a financial organization whose purpose is to raise money to reinvest it in the purchase of goods and securities or to grant financing to third parties.
Who can belong to this institute?
Any institution or organization that is dedicated to reinvesting the surplus of its income in the purchase of goods and assets of value can be considered an institutional investor; since this is done in order to preserve the value of money and create new forms of investment or generate returns from the asset that is part of an initial capital.
In this sense, financial institutions, banks, insurance companies, credit institutes, retirement funds, charities, savings funds or cooperatives, among others, can each become an investor of institutional rank.
One of the attractions offered by being an institutional investor is having voting rights on behalf of investors, to participate in decisions made within the institute's governance system.
In addition to this, being an institutional investor guarantees being part of an institution that as a shareholder has wholesale representation in the financial market of the United States and the world.
Pros
- Consolidate a group of institutions and entities that raise capital funds
- Promotes financial management
- Facilitates access to financing
- Create a safe financial market
Cons
- No disadvantages
