Warning
Info
Warning
Info
Simple English definitions for legal terms
institutional market
Read a random definition: latori praesentium
A quick definition of institutional market:
The institutional market is a place where big companies and investors buy and sell things like short-term funds and commercial paper. It's like a big store where only the biggest customers can shop. It's different from other markets where anyone can buy and sell things.A more thorough explanation:
Definition: The institutional market refers to the demand for short-term funds and commercial paper among large investors and corporations.
Example: A large investment bank may need to borrow funds for a short period of time to finance its operations. It can do so by issuing commercial paper, which is a type of short-term debt instrument. The buyers of this commercial paper are typically institutional investors such as pension funds, insurance companies, and mutual funds.
This example illustrates how the institutional market is a segment of the overall market where large investors and corporations participate in buying and selling financial instruments such as commercial paper, treasury bills, and other short-term debt securities. These investors have significant financial resources and are able to invest in large amounts, which makes them an important part of the financial system.