Different types of Investors

The Ultimate Investor

An Ultimate Investor is an investor that is business conscious with the sole aim and goal to own a successful business. An ultimate investor achieve this by means of purchasing shares, then, make an initial public offer(IPO) which is mostly expensive and associated with risks. The risks notwithstanding, it is considered as an avenue to cash in on the equity built up in the company, and also raise money to pay down debt to fund expansion when the need arises.

The Insider Investor

The Insider Investor set a primary goal of building or owning a profitable business, with a degree of management control whether as an officer of a corporation or owner of a majority of its shares of stock, through running the systems from the inside as a result of already acquired knowledge of analyzing data from the outside, though with little financial resources to meet the definition of an accredited investor, despite the financial intelligence to manage.

The Sophisticated Investors

The Sophisticated Investor develops foundation of assets that can generate high cash returns with minimum payment of taxes to build an empire of wealth over time. These type of investors are considered educated, experienced, and with excess cash, and advantage to outwit and also take advantage of tax, corporate, and securities laws to protect capital, then maximize earnings too.

The Qualified Investor

The Qualified Investor is well grounded, versed both technical and fundamental investing, especially in ability to assess a company’s potentials through reviewing the financial statements- with the ability to track the company’s industry, and calculate how changes in interest rates and the economy in general affects profitability, thereby use financial ratios to assess the strength of the company worthy of investing in from the result of the assessment already carried out.

The Accredited Investor

Accredited Investor status is expressly defined by the Securities and Exchange Commission(SEC) which gives the details of explanation that at least an Individual investor must earn Two hundred thousand US Dollars in annual income (Specified Three hundred thousand US for a couple) and must have a net worth of One million US Dollars. Because of the risks that is legally off-limits to people of lesser income categories. They could be financially educated, but are not necessarily very literate like other ones earlier discussed. They are concern majorly about security and comfort in life- and not necessarily wealth per say.

In my own observation as a writer of this topic, and considering this era technology advancement where we have e-money, e-communication and almost e-everything, am yet here and see e-food, a situation where someone is hungry and you just e-food into his or her mouth. So, I strongly support massive investment in agriculture.