Posted by: admin : Category: Investors are people who expend money on an asset in the hope of ultimately realizing a profit through ownership of that asset. Investments and investors take many forms. Many people are investors without knowing it. For example, most pensions involve the investment of the pension capital in various assets such as company shares so anyone with a pension scheme is an investor indirectly.
The most important investors in the economy are institutional investors : large financial institutions such as banks and building societies. The decisions they make on how best to invest their capital play a large role in shaping the economy as a whole. Investors can also be individuals. In some cases, investment is a peripheral activity for a person, not the means by which a living is earned. In others, it may constitute the person’s livelihood. For example, those who attempt to make a living through buying and selling shares on their own are known as “day-traders”.
Some investors deal impersonally with their investments through buying and selling assets in public markets. Others take a more personal approach, meeting and interviewing would-be entrepreneurs, for example, to evaluate the quality of their business plans and the potential of their ideas.