institutional ownership

Definition

The ownership of a substantial stake in a company by an institution such as a mutual fund, pension fund or a large institutional investor, as expressed by the number or percentage of the company's outstanding shares. Companies that have a high percentage of institutional ownership are thought to have better prospects for long term earnings growth.

Use this term in a sentence

You may want to see if you can sell part of your company to another party that wants to take on institutional ownership.

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Despite our best efforts, they had an institutional ownership of the company, which lead to some consternation among some on the board.

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The institutional ownership in the common stock of domestic companies on the New York Stock Exchange is generally far greater than that of foreign companies.

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