Investors are individuals or entities that allocate their financial resources (such as money or assets) with the intention of generating a return. They provide funding for businesses and projects, taking on risks in exchange for potential profits.
Related terms
Stock Market: A marketplace where buyers and sellers trade shares representing ownership in companies.
Risk-Reward Tradeoff: The concept that higher levels of risk are typically associated with higher potential rewards (profits).
Capital Gains: Profits earned from selling an investment at a price higher than its initial purchase price.