ELI5: Explain Like I'm 5

Securities market participants (United States)

Securities market participants are people who take part in the trading of stocks, bonds, and other types financial assets. In the United States, there are many different types of market participants. These include large banks, mutual funds, corporations, insurance companies, and individual investors. Banks and other large institutions act as middlemen between investors and the stock exchange. Mutual funds are groups of stocks and other investments that are managed by professionals. Corporations buy and sell stocks to raise money for their businesses. Insurance companies use stocks and other investments to help protect against losses. Finally, individual investors are everyday people who buy and sell stocks and other investments to make money.