Investors buy and sell securities. Investing their money in stocks, they (with an increase in their value) sell such securities at a higher price, which brings tangible income to investors. Purchased securities in accordance with the legislation of the Russian Federation are their property. Investors may be:
joint stock companies;
individuals
collective investors;
state.
There are investment companies that, by issuing their securities, attract funds from individuals and legal entities.
Collective investment is increasing in the Russian stock market ; it is growing along with the improvement of such a market. Mutual investment funds, collecting money from small buyers, unite them. Then they acquire blocks of shares and sell them at a higher price, thereby increasing the income of investors. These are the so-called mutual funds.
According to the signs of investors, one can classify:
- institutional investors. They are the largest in the financial market, these are the main participants introducing “long money” into circulation.
-Large state funds "Sovereign." They essentially manage public money. Many of them have huge assets. These are Norwegian Fund-Global, SAMA, SAFE, Temasek, etc.
- mutual funds are managed by investment companies;
- insurance. Invest money in securities from insurance premiums received as a profit from insured clients;
- banks usually sell their free money in the financial market, buying up bonds and other liquid securities;
- Pension, where pension contributions of citizens are invested .
These are all institutional investors.
Investors in the securities market are their property owners.
When working in the stock market, such an investor can choose either aggressive tactics or conservative ones.
Strategic investors include those that form a specific portfolio of stocks for the long term. Most of them seek to acquire a controlling stake in one or more enterprises.
Speculative, which act on a short-term basis. They sell shares for a short period of time, making profit from it as soon as possible.
Professionally involved in securities trading are individuals with impressive capital. Institutional investors have access to capital, so they are professional players in the stock market.
Qualified investors are a special type of professionals with experience in the securities market and knowledge in this area. They have impressive capital. Professionally assess all kinds of risks. They invest their assets in rather risky enterprises. Prefer shares of mutual investment funds, hedge funds, credit,
private equity funds, venture capital. All of the above are quite risky and not reliable in nature.
Institutional investors prefer minimal risk in their investments, counting their work on a long-term basis.
Studies have shown that financial services have become the most attractive for citizens. They were preferred by 51% percent of investors. 35% preferred retail trade, 14% - production.