An investor is a person who allocates financial capital with the expectation of a future return (profit) or to gain an advantage (interest). Through this allocated capital most of the time the investor purchases some species of property. 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.
There are two types of investors: retail investors and institutional investors.
Individual investors (including trusts on behalf of individuals, and umbrella companies formed by two or more to pool investment funds)
Angel investors (individuals and groups)
Sweat equity investor
Pension plans making investments on behalf of employees
Businesses that make investments, either directly or via a captive fund
Endowment funds used by universities, churches, etc.
Mutual 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)
Sovereign wealth funds
Large money managers
Investors might also be classified according to their . In this respect, an important distinctive investor psychology trait is risk attitude.
The term "investor protection" defines the entity of efforts and activities to observe, safeguard and enforce the rights and claims of a person in his role as an investor. This includes advice and legal action. The assumption of a need for protection is based on the experience that financial investors are usually structurally inferior to providers of financial services and products due to a lack of professional knowledge, information or experience. Countries with stronger investor protections tend to grow faster than those with poor investor protections.