Finra
To qualify as an institutional investor for purposes of institutional communications, an entity must generally have:
Institutional = $50M assets. QIB (144A) = $100M in securities.
Complete Analysis & Legal Rationale
Under FINRA rules, an institutional investor is defined as an entity with at least $50 million in total assets. This includes banks, insurance companies, investment companies, pension funds, and similar large organizations.
Distractor Autopsy (Why Other Options Are Traps)
FINRA exam writers design incorrect distractors using specific calculation mistakes and regulatory misconceptions. Review why each option succeeds or fails:
Revenue is not the threshold; total assets are the determining factor.
$10 million is below the institutional threshold.
Matches the verified teaching point in the explanation.
$100 million is the threshold for QIBs under Rule 144A, not institutional investors.
Official Standard: Outline-level citation pending rule-specific upgrade. Verify against current FINRA materials.