Investor - Financial definition
Concise definition of the term investor
An investor in finance is an individual or entity that allocates capital with the expectation of generating a return on investment.
Comprehensive definition of the term investor
Investors play a crucial role in financial markets by providing funds to businesses and governments through various investment vehicles such as stocks, bonds, mutual funds, and real estate, with the goal of achieving capital appreciation, income generation, or both. They assess risk-return profiles, market conditions, and economic indicators to make informed investment decisions, contributing to market liquidity and capital formation while balancing their financial objectives and risk tolerance.