Investment Institutions And The Stock ExchangeA survey carried out in the UK in 2002 (by the Investment Management Association) concluded that 54% of the £1,934 billion owned by these groups was held in equities (stocks). It is believed (again in the UK) that between 50% and 60% of all gilts (government loan securities) and shares are held and managed by the institutions. As you might imagine, this means that they wield enormous power. This power ranges across modern life from the boardroom to the maket. This in turn can have an impact on employees, pensioners and even governments! Indirect investment via an investment institution in capital market instruments is now the most popular way for a private individual to invest. These institutions enable small investors to buy a stake in a large, diversified portfolio of assets. If they were to purchase assets themselves, they would only be able to buy a small number of securities, with very little or no diversification. Would you like to learn more about trading? You would? Great! Then please click here for an excellent
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