To those who don’t know what is an investor they must know what is investing? Once you understand investing, understanding what is an investor is an easy job next. An investing is the business or an act of giving someone some money or capital and expecting a benefit or the profit from them. And the person who performs this act I knew as the investor. In simple words when someone is starting a business they look for the people who can put money in the business and the in return they give them the demanded profit from their business to them once it is established so an investor is a person who gives them the money this is the idea of the investor’s definition. Investing is a business in itself and anyone who has some definite amount of money can do it. Sop in short the act of investment making is known as investing and the person who does that is the investor.

Definition of an investor

So this was a short idea of what an investor is now coming to the investor’s definition an investor can be defined in such a way that “an investor is a person who commits its money with the expectation of profit return”. Getting more into the definition we can understand what type of the business and investor do and what type of business and investment is. Getting more into the details and starting from the beginning we can understand the investor’s definition better. When someone has to start a business but they don’t Havre enough money to start on their own so they look for the investors who can add their money in the business and can get the profit when the business start running and you can also call a personal investor who buys a property and when the value of the property increases they sell it to get the profit, so investor can put money in anything for the profit. This was the best way to understand an investor’s definition

Types of investors

Type of investors will help you understand the investor’s definition better an following is the few types of investors that you need to know about in order to get the idea of the investor’s definition


Banks are the best investors as in the loan program they give youth loan and you sign the documents and all the legal requirements are met and when you have to pay back to the bank there is some of the leverage given to the bank so the bank gains profit on lending you the money.

Angel investors

These investors are found all over the country ad they are the ones with enough money to help the struggling businesses by helping them get new technology or by lending them money and they can get profit in return.

Peer-to-peer lenders

These are the ones that lend money to the small businesses so they can start and establish their own business and get profits in return.


These are the ones who offer a huge amount of money to the large businesses and get the large interest.

Personal investors

The people who lend money to their relatives or close friends are known as personal investors.

This was the best explanation of the investor’s definition