Who are Retail Investors and Institutional Investors ?

• Retail Investors: Individual investors who buy and sell stocks for their personal gains.
• Institutional Investors: These are financial institute or organisations who deals on large volume of stocks like pension funds, mutual funds or insurance companies.

Example: A Retail Investor is like a small kid who plays football in his backyard alone for fun but institutional investor are like a professional football team playing league matches.

Who are Brokers and Market Makers

• Brokers: They work in stock market and facilitate buying and selling of stocks in the market.
• Market Makers: They are the investors who put large amount of funds in the market which ensures liquidity in the market.

Example: Brokers are similar as realtors who connects buyers and sellers and gets commission from each trade happens in the market.