Institutional Shareholders V Institutional Investors

hi Dookie! I do not think there is any difference between those words. they should mean the same thing.

institutional investors eventually becomes the institutional shareholders of an entity when they actually invest in that entity.

these both terms are same generally but there can be difference, as factually institutional shareholders are investors but all investors are not shareholders,,its illustration can be that for example if some one invest in a company in return for fixed charge in fact they are not shareholders ….correct me if i am wrong?

An institutional shareholder is generally one which controls a significant investment in the ordinary share capital of a company. These are generally banks, mutual funds, hedge funds, insurance companies and pension funds. They have the potential to wield significant power and influence over the direction of a company’s management and are encouraged to use this influence to secure the welfare of their own investors funds.
An institutional shareholder is just a subset of institutional investors. Although the term institutional investors and institutional shareholders are used interchangeably (and there is nothing wrong with that) institutional investors as a whole are those who have any of the following interest in a company
1. As ordinary shareholders
2. As preference shareholders
3. As loan and debenture holders
4. As trades payable (for instance a large supplier who offers preferential payable terms to a company)
5. As a supplier of plant and equipment for use in the business (Investments through the provision of long term leased assets)

Thus institutional investors are those with a large pool of resources who tend to invest in other company’s. The original intention was the spreading of risk by investing in many enterprises, however in recent times they have become capable of shaping the direction of scope of business decisions.