Invstr Academy

Institutional investors are the businesses and people who manage large sums of money on behalf of many different types of clients. Institutional investors come in all shapes and sizes. Let’s take a look at a few of them.

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The main purpose of the financial markets (and of the banking system in general) is to facilitate the flow of money from people who want to invest to those who need capital to grow. Financial markets are like the beating heart of a capitalist economy ????Efficient capital markets lead to growth, employment, and prosperity.

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Brokers are the people who receive client orders and send them to the marketplace. They earn commissions from clients for executing their orders. Unlike market makers, brokers don’t take risk on their client orders. Listen to learn about the different types of brokers.

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Exchanges rely on traders to post the prices at which they’re willing to buy or sell securities. These are called Bid and Asks:

• Bids (for buying)

The more bids and offers there are, the greater the chance of an investor being able to buy or sell the securities they want at an agreeable price. The ability to buy or sell an asset on the market is called liquidity.

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Exchanges are the digital marketplaces where trading of securities occurs. They’re one of the most important parts of the financial system!

What kind of securities are we talking about? There could be securities that already exist and are “listed” for trading on the exchange. Or they could be new securities, like an Initial Public Offering (IPO), where a company is being listed for the first time.

Remember to download the [Invstr app] (https://invstr.com) to complete the end of module quizzes and collect your graduation certificate.