Institutional investors are distinguished from private investors. The difference lies not only in the size of investments but also in the nature of decision-making: they operate according to approved investment rules, are limited by regulations, and must account for their own liability structure.
Their presence creates market liquidity and depth. Regular large orders allow transactions without sharp price swings, and their participation in placements enables large-volume issuances.
Size has a downside. A large participant cannot quickly exit a position without moving the price and must limit themselves to liquid instruments. Private investors are freer in this regard, though they lack access to certain opportunities.
For the Uzbek market, participant composition is directly significant: the broader the range of institutional investors, the more stable the secondary market, and the narrower the bid-ask spread faced by individuals.