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Investor Meaning: Definition, Examples, and Translations

๐Ÿ’ฐ
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investor

[ษชnหˆvษ›stษ™r ]

Definition

Context #1 | Noun

finance

A person who allocates capital with the expectation of a financial return. Investors typically purchase stocks, bonds, or real estate to generate income or profit.

Synonyms

financier, shareholder, stockholder.

Which Synonym Should You Choose?

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Word Description / Examples
investor

Suitable for describing someone who allocates capital with the expectation of a financial return, in various contexts such as real estate, startups, or stock markets.

  • The investor was impressed by the startup's innovative business plan.
  • Many investors are flocking to cryptocurrency markets.
shareholder

Appropriate for describing a person or entity that owns shares in a corporation, focusing on their partial ownership and rights within the company.

  • Shareholders will vote on the proposal at the annual meeting.
  • As a major shareholder, he has significant influence over company decisions.
stockholder

A synonym for shareholder, primarily used in the United States, emphasizing ownership of stock in a company.

  • The stockholders are entitled to dividends declared by the company.
  • Stockholders are concerned about the recent decline in share prices.
financier

Used when referring to someone who is engaged in or skilled at managing large amounts of money, often in contexts like banking, investments, and large-scale financial operations.

  • The financier arranged a complex funding structure for the merger.
  • A well-known financier decided to back the construction project.

Examples of usage

  • The investor decided to diversify his portfolio by investing in various industries.
  • Successful investors understand the importance of thorough research before making investment decisions.

Translations

To see the translation, please select a language from the options available.

Interesting Facts

Economics

  • Investors play a crucial role in the economy by providing capital to businesses, helping them grow and innovate.
  • Different types of investors include individual retail investors, institutional investors like pension funds, and venture capitalists who fund startups.

Psychology

  • Behavioral finance studies how emotions and psychological factors influence investment decisions, often leading to irrational choices.
  • Cognitive biases, such as overconfidence, can impact an investorโ€™s ability to evaluate risks accurately.

Pop Culture

  • The television show 'Shark Tank' showcases aspiring entrepreneurs pitching their ideas to investors in hopes of receiving funding.
  • Movies and books often depict investors as either heroes who save failing businesses or villains who exploit companies for profit.

Technology

  • In the tech world, angel investors provide initial funding for startups, often in exchange for a share of ownership.
  • Crowdfunding platforms have democratized investing, allowing anyone to back a project and become a sort of investor.

Origin of 'investor'

Main points about word origin

  • The word 'investor' comes from the Latin 'investire', meaning 'to put on' or 'to clothe', suggesting the idea of putting money into something.
  • The use of the term in financial contexts has been prominent since the 19th century, when modern finance began to take shape.

The term 'investor' dates back to the early 17th century, derived from the Latin word 'investire' meaning 'to clothe' or 'to surround'. Originally used in the context of clothing or robes, the term gradually evolved to represent the act of providing capital with the expectation of profit. Over the centuries, the concept of investing has become a fundamental aspect of modern finance and economics.

See also: disinvest, invest, investigation, investiture, investment, investments, investors.

Word Frequency Rank

At #7,242 in frequency, this word belongs to advanced vocabulary. It's less common than core vocabulary but important for sophisticated expression.