Katana VentraIP

Investor

An investor is a person who allocates financial capital with the expectation of a future return (profit) or to gain an advantage (interest).[1][2] Through this allocated capital the investor usually purchases some species of property.[3] 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 stock is a shareholder.

For the Swedish investment company, see Investor AB.

making investments on behalf of employees

Pension plans

that make investments, either directly or via a captive fund

Businesses

used by universities, churches, etc.

Endowment 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)

Mutual funds

Sovereign wealth funds

Large money managers

[6]

There are two types of investors: retail investors and institutional investors.[4]


A retail investor is also known as an individual investor.[5]


There are several sub-types of institutional investor:


Investors might also be classified according to their profiles. In this respect, an important distinctive investor psychology trait is risk attitude.

Investor protection through government[edit]

Investor protection through government involves regulations and enforcement by government agencies to ensure that market is fair and fraudulent activities are eliminated. An example of a government agency that protects investors is the U.S. Securities and Exchange Commission (SEC), which works to protect reasonable investors in the United States.[1]


Similar protections exist in other countries, including the United Kingdom where individual investors have certain protections via the Financial Services Compensation Scheme (FSCS).[7]

Investment tax structures[edit]

Company dividends are paid from net income, which has the tax already deducted. Therefore, shareholders are given some respite with a preferential tax rate of 15% on "qualified dividends" in the event of the company being domiciled in the United States. Alternatively, in another country having a double-taxation treaty with the US, accepted by the Internal Revenue Service (IRS). Non-qualified dividends paid by other foreign companies or entities; for example, those receiving income derived from interest on bonds held by a mutual fund, are taxed at the regular and generally higher rate of income tax. When applied to 2013, this is on a sliding scale up to 39.6%, with an additional 3.8% surtax for high-income taxpayers ($200,000 for singles, $250,000 for married couples).[8]

 – Investor with a special legal status

Accredited investor

 – Compounding sum paid for the use of money

Compound interest

 – Collection of finance from backers to fund an initiative

Crowd funding

 – Able to make informed choices about money

Financial literacy

 – Investors who invest professionally and as their main occupation in the stock market

Institutional investor

 – Rules for suing countries by foreign investors

Investor–state dispute settlement

 – Type of private equity investment

Growth capital

 – Colloquial term for the tasks performed when conducting due diligence on a financial model

Model audit

 – Method of philanthropy that mirrors a for-profit business

Philanthrocapitalism

 – Buying and selling real estate for profit

Real estate investing

 – Type of bank account

Saving account

 – Discrete round of investment

Securities offering

 – Any investment strategy combining both financial performance and social/ethical impact.

Socially responsible investing

 – Person or company involved in trading equity securities

Stock investor

 – Conjecture that there is greater benefit to receiving a sum of money now rather than later

Time value of money

(1972). The Money Lords: The Great Finance Capitalists, 1925–1950. New York: Weybright and Talley.

Josephson, Matthew

Graham, Benjamin; Zweig, Jason (February 21, 2006) [1949]. The Intelligent Investor: The Definitive Book on Value Investing (Revised ed.). HarperCollins.  0-06-055566-1.

ISBN

Media related to Investors at Wikimedia Commons