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Article: Institutional investors: the external costs of a successful innovation.
- Article from:
- Journal of Economic Issues
- Article date:
- December 1, 2002
- Author:
CopyrightCOPYRIGHT 2002 Association for Evolutionary Economics. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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One of the most prominent and important changes in financial affairs during recent decades is the surge of "institutional investors," or "institutionals." This group comprises all investors in financial markets which are neither private households nor public institutions. They include mutual funds and pension funds, banks, insurance companies, and similar private institutions. More and more equities and other financial assets are thus directed by fund managers or other institutional investors. As clients usually pay for these services, institutional investors can be understood to be a successful innovation in financial markets. They improve the professionalism of marker ...