Investor: Difference between revisions

For the Swedish investment company, see Investor AB.

An investor is a party that makes an investment into one or more categories of assets --- equityat the IPO, New debt securities, real estate, currency, commodity, derivatives such as put and call options, etc. --- with the objective of making a profit. It is important to note that shareholders and bondholders are "investors" if and only if they are the original purchasers of the debt or equity. All others are in the secondary market. That is, while the secondary market indirectly supports the primary market, it does not contribute original capital to the issuing organization. Therefore, those in the secondary market are NOT investors.

Types of investors

The following classes of investors are not mutually exclusive:

• Individual investors (including trusts on behalf of individuals, and umbrella companies formed by two or more to pool investment funds)
• Collectors of art, antiques, and other things of value
• Angel investors (individuals and groups)
• Sweat equity investor
• Venture capital funds, which serve as investment collectives on behalf of individuals, companies, pension plans, insurance reserves, or other funds.
• Businesses that make investments, either directly or via a captive fund
• Investment trusts, including real estate investment trusts
• Mutual funds, hedge funds, and other funds, ownership of which may or may not be publicly traded (these funds typically pool money raised from their owner-subscribers to invest in securities)
• Sovereign wealth funds

Also, investors might be classified according to their styles. In this respect, an important distinctive investor psychology trait is risk attitude.

Investor protection

The term “investor protection” defines the entity of efforts and activities to observe, safeguard and enforce the rights and claims of a person in his role as an investor. This includes advise and legal action. The assumption of a need of protection is based on the experience that financial investors are usually structurally inferior to providers of financial services and products due to lack of professional knowledge, information and/or experience.

See also

• Business oligarch
• Businessperson
• Captain of industry
• Financier
• Media proprietor
• Robber baron (industrialist)
• Venture capitalist
• Investment
• Securities offering
• Private equity
• Corporate finance
• Stock investor
• Growth capital
• Crowd funding
• Sweep account
• Model audit