What is an investor?
An investor is someone who wants a greater return on their money than bank deposits can deliver. To achieve this, they are prepared to run greater risks in the hope of greater eventual rewards. Wise investors never forget they may lose all their money.
Where have you heard about investor?
Financial-services advertising focuses on 'retail investors', the individual investors that buy and sell securities for themselves rather than a larger organisation. 'Institutional investors' are the organisations that invest on behalf of their members. Pension funds, hedge funds and mutual funds are some examples of these larger investors, that often feature in reports on huge infrastructure projects.
What you need to know about intrinsic value...
Investors are often seen as people backing a new business venture. Plenty such investors do exist, but so do those who buy government bonds or shares in long-established big businesses. Investors can be enthusiastic amateurs playing the market, or experienced solo operators or well-capitalised investment firms with billions of dollars of assets under management.
While most jurisdictions provide compensation for defrauded investors, none is available for those whose investments have simply not worked out. Investment, whether in relatively safe assets like bonds or more speculative ventures, always carries some risk.