Types of Investors & Types of Speculators

By Shaik Mohammad Imran

SHAIK MOHAMMAD IMRAN

Introduction :

An investor is a person who allocates capital with the expectation of a futurefinancial return. Types of investment include : equity , debt securities , realestates, currency , and commodity , derivatives such as put and call options,etc,

Someone who provides a business with capital and someone who buys astock are both investors. Investors can include stock traders but with thisdistinguishing characteristic : Sometimes investors are owners of a companywhich entails responsibilities.

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Types of Investors :

1. Contrarians : The “ Contrarian” buys when the rest of the world sells.

2. Trend Followers : ‘Trend followers ‘ are more conservative and tend toinvest in products such as bank stocks.

3. Hedgers and Holders : The last is the very conservative ‘hedger andholder’ – the famous ‘small investors’ of India who wants high return andlow risk , preferably guaranteed by the government.

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Speculator :

According to Oxford Dictionary a speculation can be defined as “ A messageexpressing an opinion based on incomplete evidence”.

Types of Speculators :1. Bull2. Bear3. Stag4. Lame Duck

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Types of Speculator :

1. Bull : A bull also called as Tejiwala is an operator who os hopeful of pricerise in the near future. In anticipation of price rise, makes purchases ofshares and other securities with the intention of selling them at higherprices in future.

2. Bear : A bear or a Mandiwala on the other hand is a speculator who iswary of fall in prices and hence sells securities so that speculator maybuy them at cheap price on future.

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Types of Speculator :

3.Stag : A stag is that types of speculator who treads his path very carefully.Stag speculator applies for share in new companies and expects to sell themat a premium if he gets an allotments, selects those companies whoseshares are most in demand and are likely to carry a premium.

4.Lame Duck : A lame duck is nothing but a stressed bear. When a bearfinds it difficult to complete his promise and labelled as a lame duck.

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