According to the USA, who is considered an institutional investor?

Institutional investors are typically defined as organizations that trade large volumes of securities and have significant assets under management. According to the Uniform Securities Act (USA), the determination of who qualifies as an institutional investor can include a broad range of organizations, including but not limited to investment companies, pension funds, banks, and insurance companies. The concept is not limited strictly to financial institutions; it can also encompass other entities that fit specific criteria set forth by regulatory authorities or the administrator.

This aligns with choice C, which states that institutional investors are "organizations determined by the administrator." The administrator has the discretion to establish what constitutes an institutional investor within their jurisdiction, reflecting the flexible nature of the definition to accommodate various organizational structures and investment portfolios. This flexibility is important because it allows for the inclusion of diverse entities that can play significant roles in the financial markets.

In contrast, individuals with assets exceeding a certain threshold, entities that merely trade on the stock exchange, and a strict limitation to just banks and insurance companies do not encapsulate the full range of what the USA recognizes as institutional investors. These options are too narrow or do not align with the regulatory framework intended by the USA.