Definition of Net Institutional Sales (NIS)
Net Institutional Sales, or NIS, denotes a metric used to assess investments presented by institutional investors.
Understanding Net Institutional Sales (NIS)
NIS delves into a company’s net share sales driven by substantial institutional investors, encompassing pension funds and asset management industry entities. When an asset displays a pronounced negative NIS, it signals institutional investors’ waning interest in retaining that particular asset. NIS serves as a favored metric among investment teams, distinguishing stocks being predominantly sold by institutional stakeholders. This metric stands out as it juxtaposes the total share acquisitions against total share sales. For instance, a stock boasting a NIS rate of -10% implies that for every 10 shares institutional investors acquire, they sell 11.
Example
If a prominent private equity firm, known for its market intelligence, starts selling its shares in a company, it may result in a high negative NIS for that stock.
Importance of NIS
Transitioning to its significance, NIS provides a snapshot of the investment landscape. It grants digital assets and other investment categories an understanding of institutional confidence. A consistent downward pressure from institutional sellers can adversely affect an asset’s price.
Retail vs. Institutional Sales
While retail investors typically refer to individual investors trading small amounts, institutional sales pertain to large-scale sales activities targeting entities like pension funds, private equities, and fund platforms. The sales team involved in institutional sales, known as the “Institutional Sales Team,” requires excellent communication skills, project management skills, and organizational skills.
Frequently Asked Questions:
1. Is institutional sales B2B?
Yes, institutional sales typically operate on a B2B level, focusing on selling to organizations and not individual consumers.
2. What does an institutional salesperson do?
Someone in institutional sales, often backed by assets under management expertise, liaises between investment firms and potential large-scale investors, ensuring efficient sales activity and often leveraging market intelligence.
