Investor
A person or institution that supplies money in exchange for ownership, hoping to earn a return.
An investor can lose dividend income when profits fall, lose value when the business shrinks, and lose the whole stake if it closes, because owners are paid last.
Often confused with
- Creditor
- A creditor is owed a fixed repayment and is paid first; an investor owns a share, is paid last, and has no promised amount.
Taught in
See also
3.5.C.1 · 3.5.C.3 · 3.5.C.6