Financial institution

Financial institution Money management company or corporation which collects funds from the public and invests or lends to borrowers. These are of two types: those which do not accept deposits but sell a product, such as life insurance policies or units in a unit trust or shares in mutual funds; other which accepts deposits from the public for a fixed periodic return. The money that is collected by either is invested in company stocks, bonds, short term money market instruments, real estate, and other profitable operations. Some of these institutions have very large funds and can influence stock prices considerably. They are the largest players of the stock market with honest money.

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