What is an institutional investor? Along with individual investors, what do they detemine?

What will be an ideal response?

Institutional Investors are organizations that invest pools of money on behalf of individual investors or other organizations. Examples include banks, insurance companies, pension funds, mutual funds, and university endowments. Institutional investors, together with individual investors, determine the prices of bonds and stocks implicitly determining the expected rates of return on these assets thereby setting the MNC's cost of capital. The cost of capital, in turn, affects project valuations, which determines a company's investments.