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Definition: An institution is a large organization--such as a college endowment, pension fund, insurance company, etc--that invests in securities on its own behalf or the behalf of its members/investors.
Advice: Institutional investors have considerable pull in the financial markets. Because they invest millions or even billions of dollars, they have a greater ability to affect change at companies. Many activist hedge funds have even been successful in getting seats on the board of directors of various companies.
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