2.17What are market participants?
1What is it?
Market participants are all the people and organisations that buy and sell in the market.
2Why does it exist?
Different participants have different goals, money and time horizons. Knowing who is on the other side of your trade helps you understand price moves.
3Diagram
Market participants
Retail investors
- • Individuals like you
Institutions
- • Mutual funds
- • Insurance (LIC)
- • Banks
- • Pension funds
Foreign investors (FPI/FII)
- • Global funds
Others
- • HNIs
- • Proprietary traders
- • Market makers
4Quick revision
- Participants include retail investors, institutions and foreign investors.
- Each has different money and goals.
- Large institutions can move prices.
5Knowledge check
Q1. Name two types of institutional investors.Show answer
Mutual funds, insurance companies, banks, pension funds.
Q2. What is an HNI?Show answer
A High Net-worth Individual, an individual with large investable wealth.
Q3. Why do institutions influence prices?Show answer
They trade huge amounts of money.