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Retail Investor

A retail investor is an individual or small-scale investor who buys and sells securities, such as stocks, bonds, or mutual funds, for their personal investment portfolio. Retail investors typically invest their own money rather than managing investments on behalf of others, as institutional investors do.

What You Need To Know

Retail investors make investment decisions based on their personal financial goals, risk tolerance, and available resources. They typically invest their own funds, whether it be through a brokerage account, retirement account, or other investment vehicles. Compared to institutional investors or professional money managers, retail investors may have limited financial resources and investment expertise. They often rely on publicly available information, research reports, financial news, and investment advice from brokers, financial advisors, or online platforms to make informed investment decisions.

Many retail investors aim to build long-term wealth through investing. They often adopt a buy-and-hold strategy, investing in assets they believe will appreciate in value over time. Retail investors may focus on asset appreciation, dividend income, or a combination of both to achieve their financial objectives.

Retail investors are protected by regulatory frameworks aimed at ensuring fair and transparent financial markets. Securities regulators enforce rules and regulations to safeguard retail investors from fraudulent activities, misleading information, market manipulation, and other unethical practices.