A retail investor is an individual investor who buys and sells securities for their personal account, rather than for an organization or institution.
Retail investors typically invest smaller amounts of money compared to institutional investors, such as pension funds or hedge funds.
They have access to public financial markets through brokerage accounts. Retail investors can buy stocks, bonds, mutual funds, ETFs, and other financial instruments.
Retail investors generally have limited influence over the market due to the relatively small scale of their trades compared to institutional investors.
Their goals often include saving for retirement, major purchases, or building wealth over time. They tend to have a long-term investment horizon.
Retail investors’ risk tolerance varies widely based on their financial situation, age, and investment objectives. They may be more prone to emotional decision-making compared to professional investors.
Retail investors rely on publicly available information, financial news, and personal research to make investment decisions. Some may also use financial advisors.
They are protected by regulations to prevent fraud and ensure fair market practices. Securities regulators often place limits on what products retail investors can access to manage risk.
