Investor

An investor is an individual or entity that allocates capital to various financial instruments or assets, such as stocks, bonds, real estate, or businesses, with the expectation of generating a profit or return on their investment. Investors can range from individuals saving for retirement to large institutions managing billion-dollar portfolios. Investors are typically categorized by their risk tolerance, investment horizon, and financial goals, influencing the types of assets they choose.

Example

A retiree invests in a diversified portfolio of stocks and bonds to generate income and preserve wealth, while a hedge fund manager invests in high-risk, high-reward strategies.