"The average trade of an individual is in the thousands of shares, whereas the institutional trade can be in the millions of shares. Clearly, the bigger the order, the bigger the move in the stock"
- Maria Bartiromo
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This quote by Maria Bartiromo is describing the distinctions between private and institutional trading. She is highlighting that specific traders normally trade in the thousands of shares, while institutional traders can sell the millions of shares. This distinction in size of trades can have a considerable impact on the stock exchange. The bigger the order, the most likely it is to cause a bigger move in the stock. This is due to the fact that institutional traders have more cash to invest and can for that reason have a higher impact on the stock market. For that reason, it is essential to be knowledgeable about the differences between individual and institutional trading when purchasing the stock exchange.
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