An institutional investor is a legal entity that pools money from multiple investors to invest in various assets and securities. These are very big investors that make investments on behalf of someone else.
Since institutional investors are responsible for massive amounts of money, they are generally more risk-averse. So, if they get any hint that the market (or any stock) is starting to trend downward, they are more likely to dump risky assets. Such actions of institutional investors could prove an early signal for retail investors, helping them to minimize losses.
Let’s take a look at the top stocks sold by institutional investors.
This post originally appeared on 24/7 Wall Street.