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Investor
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An investor is a person who 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[change | change source]
Investments can include:
- Equity
- Debt securities
- Real estate
- Infrastructure
- Currency
- Commodities
- Derivatives such as put and call options, futures, and forwards
Types of Investors[change | change source]
There are two main types of investors:
- Retail investors: Also known as individual investors.
- Institutional investors: These include pension plans, businesses, endowment funds, mutual funds, hedge funds, sovereign wealth funds, and large money managers.
Investor Profiles[change | change source]
Investors can also be classified according to their risk attitudes:
- Risk-averse investors: Prefer lower returns with known risks.
- Risk-tolerant investors: Willing to take higher risks for potentially higher returns.
Investor Protection[change | change source]
Government agencies, such as the U.S. Securities and Exchange Commission (SEC), provide regulations and enforcement to ensure fair markets and protect investors from fraudulent activities.
References[change | change source]
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