PolyNovo Limited (ASX:PNV) saw its shares plummet by 9.52% in Monday's trading session, continuing a downward trend that has alarmed both individual and institutional investors. This sharp decline follows a 12% decrease reported last week, intensifying concerns about the company's market performance.

The recent slump has put significant pressure on PolyNovo's diverse shareholder base. Individual investors, who own 56% of the company, are bearing the brunt of the losses. This majority stake held by retail investors suggests that the general public has substantial influence over the company's management and governance decisions, but also exposes them to greater financial risk during market downturns.

Institutional investors, holding 31% of PolyNovo's shares, are also feeling the heat as the company's market capitalization dropped to AU$725 million last week. The continued selling pressure indicates growing unease among shareholders about the company's near-term prospects. Adding to the negative sentiment, recent insider sales have been reported, potentially signaling a lack of confidence from those with intimate knowledge of the company's operations.