Yes Telstra is a good example, plenty of Institutions invest in Telstra with Telstra having 14Billion odd shares on issue.
The Institutions deal in percentages of a company and how much percentage of their portfolio is exposed to a sector, should they have to buy 1 million or 10 million shares in a company to achieve their targets makes no difference to them.
And as far as market perceptions go, loyalty to those that have supported management over the long journey far more important to the good reputation of the company and its management, imo.
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