Why are institutional investors important in today's business world?

A legend
surrounding the late bank robber Willie Sutton has the by-then-incarcerated criminal responding
to the question why he robs banks as replying, because thats where the money is. This is not
to suggest that institutional investors are criminals; they are not, except in rare
circumstances in which they are investigated for violations of securities regulations. The
purpose of including the quote in this answer is to highlight the role of institutional
investors in funding projects in todays business environment. Institutional investors are
usually, but not always, groups of investors, often pension and mutual funds, commercial banks,
money managers, etc., who control very large amounts of money seeking investment opportunities
for further growth and protection against taxation. Institutional investors are important today
because thats where the money is.

There is often a level of financial
stability surrounding many institutional investors that may not exist among...