Inventors GIFs Cliparts
An investor is a person that allocates capital with the expectation of a future financial return (profit) or to gain an advantage (interest). Through this allocated capital most of the time the investor 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 a stock is a shareholder. 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. Investors can include stock traders but with this distinguishing characteristic: investors are owners of a company which entails responsibilities. Types of investors There are two types of investors, retail investors and institutional investors:= 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 employeesBusinesses that make investments, either directly or via a captive fundEndowment funds used by universities, churches, etc.
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