Put quite simply, a financial investor is a person who invests some initial capital in the hopes of gaining a return on this money over time. Such investments could be incredibly simple, such as buying a certificate of deposit for 100 dollars and getting paid back 105 dollars in a year. Investments could also be much more complex, such as investing in an old, broken down house, and putting some time and effort into the house and selling (or flipping) the house for a lot more money. Both these ventures require financial investors to make them happen.
Am astute investor in modern terms is usually a person with high levels of education, such as graduate school or other intense training. These type of financial investors generally is thought of as a person who works on wall street for a large investment company, although this is not always the case.
In reality, a financial investor is a very broad term. From wall street guru’s to personal lenders, almost everyone can become a good investor. Some people start out very small, investing a little bit of money into several stocks and bonds, while others take on much more risky ventures, such as giving an entrepreneur a large amount of startup money. Generally, a financial investors return (how much money they make on their initial investment) is directly proportional to the amount of risk they are willing to take.
We have quickly taken a look at what constitutes a person who seeks to earn money through the correct usage of their existing capital. This can be accomplished through stocks, real estate and other forms of investing. Of course we haven’t covered everything related to financial investments. But we have touched on the ones you should know to begin making better financial decisions. And if these decisions are tempered with a little experience you should be able to make them work for you.
