Investor

An investor allocates capital with the expectation of a future financial return. Types of investments include: equity, debt securities, real estate, currency, commodity, derivatives such as put and call options, etc. This definition makes no distinction between those 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 a stock is a shareholder.

Essential quality

The assumption of risk in anticipation of gain but recognizing a higher than average possibility of loss. The term "speculation" implies that a business or investment risk can be analyzed and measured, and its distinction from the term "investment" is one of degree of risk. It differs from gambling, which is based on random outcomes.

Investors can include stock traders but with this distinguishing characteristic: investors are owners of a company which entails responsibilities.

Types of investors

There are two types of investors, retail investors and institutional investors:

Online and offline

The terms "online" and "offline" have specific meanings in regard to computer technology and telecommunications in which "online" indicates a state of connectivity, while "offline" indicates a disconnected state. Common vernacular extended from their computing and telecommunication meanings and refers specifically to an Internet connection. Lastly, in the area of human interaction and conversation, discussions taking place during a business meeting are "online", while issues that do not concern all participants of the meeting should be "taken offline" — continued outside of the meeting.

Definitions

In computer technology and telecommunication, online and offline are defined by Federal Standard 1037C. They are states or conditions of a "device or equipment" or of a "functional unit". To be considered online, one of the following may apply to a system: it is under the direct control of another device; it is under the direct control of the system with which it is associated; or it is available for immediate use on demand by the system without human intervention.