Many of us dream of becoming investors and that’s a good thing. But who is an investor and what is an investor definition in economics?
Oftentimes, the little money and resources available at our disposal never go exhausted. This is because someone has made some of the best investment decisions for us and we are expected to protect them.
An investor goes into investment. So anyone who intends to or is already putting their resources into places that will generate more income and profit is an investor.
The above statement is not the investor definition in economics, it is just an introduction to the concept of an investor and investment at large. Now let us go pointing you in the right direction.
What Is Investment?
According to economics, an investment is an asset or item acquired with the goal of generating income or appreciation.
This means that one may spend his earnings on acquiring a property that has a longer lifespan and trade that property in different ways to acquire more than the money spent in acquiring it.
Who Is An Investor?
Investopedia defines an investor is any person or an entity or mutual fund who commits capital with the expectation of receiving financial returns.
The baseline is that an investor is a person. Not just that but someone who forecasts financial markets and commits capital in order to make more gains in return.
What Is The Best Investor Definition In Economics?
So how did economics define an investor? Is the definition here any different from the one above? Let us look at the investor definition in economics now.
Not much different. An investor is one who commits capital into a financial venture with the expectation of receiving financial returns by relying on different financial instruments and accomplishing important financial objectives like building retirement savings or accumulating additional wealth over time.
You must take note that all Investors use different financial instruments to earn a rate of return to accomplish financial goals and objectives. They also go in for securities including stocks from stock markets, bonds, mutual funds, other commodities, and real estate.
