Which of the following are examples of institutional investors? Select ALL correct answers.High net worth individualsCompanies that are publicly traded on stock exchangesPrivate equity firmsMutual funds
Question
Which of the following are examples of institutional investors? Select ALL correct answers.High net worth individualsCompanies that are publicly traded on stock exchangesPrivate equity firmsMutual funds
Solution
The examples of institutional investors from the options provided are:
- Private equity firms
- Mutual funds
High net worth individuals and companies that are publicly traded on stock exchanges are not typically classified as institutional investors. Institutional investors are organizations that invest on behalf of their members. They include pension funds, mutual funds, insurance companies, and private equity firms.
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