Financial statement users include institutional investors and private investors. What is the difference between the two? Institutional investors lend money to the company whereas private investors purchase the company's stock and own a majority of the outstanding stock. Private investors lend money to the company whereas institutional investors purchase the company's stock and own a majority of the outstanding stock. Institutional investors are funds that invest on behalf of individuals whereas private investors are individuals who purchase stock via the company or brokerage directly. Private investors are funds that invest on behalf of individuals whereas institutional investors are individuals who purchase stock via the company or brokerage directly