What does investor mean?
An investor is a person or organization that commits money or other capital to a business venture, property, project, or financial asset. The term is especially common in discussions of finance, commerce, and business development. Individuals may invest in companies, shares, property, or funds, while organizations such as banks, pension funds, and private-equity firms may invest on behalf of other people. The word often suggests an expectation of profit, interest, dividends, or another financial return, although some investments may also be motivated by social, environmental, or strategic goals. Investors can contribute money, expertise, access to networks, or other resources. The term is distinct from a donor, who generally provides money without expecting a financial return, and from an entrepreneur, who typically develops and operates a business rather than primarily supplying capital to it.
nounA person or organization that commits money or other capital to an enterprise, property, or financial asset, typically in the expectation of a return.
- A person or organization that invests money or other capital in an enterprise, property, or asset for a potential financial return.
"The proposal attracted investors willing to fund its research and development."
"She met with potential investors before presenting the company's revised business plan."
"The fund attracts institutional investors seeking long-term returns."
The regular plural is formed by adding -s and is used for both individual and organizational investors.
"The exhibition attracted investors from several countries."
An investor supplies the capital; an entrepreneur often turns that capital into a product, service, or company.
Reviewed by Deb Chak, Editor. AI-assisted content curated by RJS Tech Solutions LLP.
Where does investor come from?
Investor is an English formation from invest and the agentive suffix -or. Invest comes through French from Latin investire, meaning “to clothe” or “equip,” with roots in in- and the Latin verb vestire, “to dress.” Older senses of invest included clothing someone or formally entrusting someone with an office or possession; its financial use developed from the idea of placing money or resources so that they might yield a return. Related English words include invest, investment, and investiture, while vesture continues the Latin clothing sense.
How investor is actually used
The term is neutral in tone but is associated primarily with finance, business, commerce, and property. It can describe both individuals and organizations, including private individuals, financial institutions, pension funds, and venture-capital firms.