Equity Market Participants - Characteristics of Institutional and Retail Investors

In the context of equity markets, understanding the role of various market participants is crucial. Among these participants are institutional investors, retail investors, and proprietary trading firms. Each group plays a unique role in market dynamics and contributes to overall market liquidity, efficiency, and price discovery.

Consider the scenario: An institutional investor manages a large portfolio and engages in block trading to minimize market impact. Meanwhile, a proprietary trading firm uses algorithms to make rapid trades based on real-time market data. In this setup, which of the following statements accurately describes the characteristics or roles of these market participants?