STOCK INVESTOR.December 17, 2020
An investor is any person or other entity (such as a firm or mutual fund) who commits capital with the expectation of receiving financial returns. … Investors can analyze opportunities from different angles, and generally prefer to minimize risk while maximizing returns.
What is a stock investor :
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 a stock is a shareholder.
What are the 3 types of investors :
There are three types of investors: pre-investor, passive investor, and active investor.
Essential quality :
The assumption of risk in anticipation of gain but recognizing a higher than average possibility of loss. The term “speculation” implies that a business or investment risk can be analyzed and measured, and its distinction from the term “investment” is one of degree of risk. It differs from gambling, which is based on random outcomes.
Retail investor :
- Individual investors (including trusts on behalf of individuals, and umbrella companies formed by two or more to pool investment funds).
- Angel investors (individuals and groups).
- Sweat equity investor.
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.