Topic summary

Investor

Investor

Person who allocates capital with the expectation of a financial return An investor is a person or entity that allocates financial capital with the expectation of a future return (profit) or to gain an advantage (interest). Through this allocated capital the investor usually purchases some species of property. Types of investments include equity, debt, securities, real estate, infrastructure, currency, commodity, token, derivatives such as put and call options, futures, forwards, etc. This definition makes no distinction between the investors in the primary and secondary markets. That is, someone who provides a business with capital and someone who buys a stock are both investors. An investor who owns stock is a shareholder. Types of investors There are two types of investors: retail investors and institutional investors. A retail investor is also known as an individual investor. There are several sub-types of institutional investor: Pension plans making investments on behalf of employees Businesses that make investments, either directly or via a captive fund Endowment funds used by universities, churches, etc. Mutual funds, hedge funds, and other funds, ownership of which may or m