Definition of Investor.
Fri May 11, 2012 5:39 pm
After reading lot's of posts on this Forum and others including Facebook, i've come to the conclusion that the majority of our fans don't actually grasp what being an Investor means. So here we go, I think this covers it:
Investor
One who places capital into a project or business with the intent of making a profit from the initial placing of capital. An investor may be one who extends a loan or line of credit, which entitles one to repayment with interest, or he may buy an ownership stake in a business with the hope that the business will become profitable. Investing may also involve buying a particular asset with the intent to resell it later for a higher price. Many types of investing exist and each is subject to greater or lesser regulation in the jurisdiction in which it takes place.
Neither a speculator (who takes on high risks for high rewards) nor a gambler (who takes on the risk of total loss for out of proportion rewards) but one whose primary objectives are preservation of the original investment (the principal), a steady income, and capital appreciation.
Legally, investors can only exist in places where individual property rights exist and are protected.
Investor
One who places capital into a project or business with the intent of making a profit from the initial placing of capital. An investor may be one who extends a loan or line of credit, which entitles one to repayment with interest, or he may buy an ownership stake in a business with the hope that the business will become profitable. Investing may also involve buying a particular asset with the intent to resell it later for a higher price. Many types of investing exist and each is subject to greater or lesser regulation in the jurisdiction in which it takes place.
Neither a speculator (who takes on high risks for high rewards) nor a gambler (who takes on the risk of total loss for out of proportion rewards) but one whose primary objectives are preservation of the original investment (the principal), a steady income, and capital appreciation.
Legally, investors can only exist in places where individual property rights exist and are protected.