Institutional investors own more than two-thirds of corporate equities, and they account for an even greater percentage of trading volume. Because they make up such a large share of the market, when these pension funds, mutual funds, insurance companies, hedge funds, endowment funds, and other behemoth investors buy and sell based on news, it moves market prices for everyone.
Review of Financial Studies
Mutual funds are an investment mainstay for many Americans, with more than 40 percent of U.S. households invested. But with over 9,500 mutual funds available in the United States, the options can be overwhelming.
With so many mutual fund companies and so many pricing options out there, how should an investor choose?
Competition Destroys Value, But It's Also Safer
People who study financial economics regularly assume that the markets in which firms sell their products are perfectly competitive, or alternatively that firms operate in isolation. This all-or-nothing thinking is unrealistic.