Retail Investors vs. Institutional Investors

• Retail Investors: People trading securities for individual records.
• Institutional Investors: Associations, for example, pension funds, mutual funds, and insurance companies that trade enormous volumes of securities.

Example: Retail investors resemble individual players in a neighborhood football match-up, while institutional investors resemble proficient groups playing at a more elevated level.

Brokers, Market Makers, and Exchanges

• Brokers:Work with exchanges among buyers and traders and procure a commission.
• Market Makers: Guarantee liquidity in the market by being prepared to trade whenever.
• Exchanges: The setting for trading stocks, where prices are determined.

Example: Brokers resemble realtors assisting you with purchasing a home, while Market Makers are the banks that finance those buys.