Investor - Term Overview


An investor is that agent, person or institution, who renounces the consumption of part of his wealth at the present time with the aim of obtaining a greater return in the future.

Otherwise, an investor sacrifices greater well-being in the form of consumption today in the hope that in the future he / she will be able to obtain greater returns and therefore greater well-being.

Types of investors

The character of investors is very varied, and very changeable over time. An investor can be an individual, with small savings, a large financial institution, a government or a company, who decides to bet on a specific asset or asset in the future.

We can distinguish between investors according to where the money comes from between:

- Public investor, if it's a public administration that commits the investment with a social objective.
- Private investor, those who have a purely monetary motivation for profitability.

On the other hand, the investor's profile can be divided according to various qualities such as time and its magnitude:

According to the weather:

Stable operations. Also known as long-term, they focus on long-lasting investments with the aim of revaluing the price and capturing dividends in the case of the stock market, and characterized by having a more conservative profile. Speculative. They invest in environments where volatility is great, which allows them to obtain large returns and also large losses in a very short time. Its room for maneuver is great, due to its knowledge of the market and little stability.

According to magnitude:

Private investors: Small savers who decide to put their money in products with medium and low returns but with very little risk, generally in fixed income. Institutional investors: Large corporations and intermediaries who decide to move their resources with the aim of obtaining a higher return. A specific case is intermediaries, who put investors and capital recipients in contact, obtaining a commission for it. This is the case of banks and fund managers.

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