Crossover Investor

AAA

DEFINITION of 'Crossover Investor'

An investor who invests prior to, during and after a company's initial public offering. A crossover investor's goal is to get the highest returns possible, by investing in numerous stages of a business life cycle. Crossover investing strategies tend to be more popular within the technology industry. Crossover investors will be committed to the company they are investing in and stick with these companies for years.

INVESTOPEDIA EXPLAINS 'Crossover Investor'

This investment strategy aims to increase returns by investing in a good company at numerous stages of its business life cycle. This is the direct opposite of the buy and hold method, where the investor does not trade between the period that a security is first bought and until it's finally sold. The crossover method aims to get the best returns during short term periods, while the buy and hold method focuses on long term growth.

RELATED TERMS
  1. Red Herring

    A preliminary prospectus filed by a company with the Securities ...
  2. Direct Public Offering - DPO

    When a company raises capital by marketing its shares directly ...
  3. Buy And Hold

    A passive investment strategy in which an investor buys stocks ...
  4. Stock

    A type of security that signifies ownership in a corporation ...
  5. Life Cycle

    The course of events that brings a new product into existence ...
  6. Initial Public Offering - IPO

    The first sale of stock by a private company to the public. IPOs ...
Related Articles
  1. Getting To Know The Stock Exchanges
    Options & Futures

    Getting To Know The Stock Exchanges

  2. A Look At Primary And Secondary Markets
    Investing Basics

    A Look At Primary And Secondary Markets

  3. Interpreting A Company's IPO Prospectus ...
    Fundamental Analysis

    Interpreting A Company's IPO Prospectus ...

  4. 5 Tips For Investing In IPOs
    Investing

    5 Tips For Investing In IPOs

comments powered by Disqus
Hot Definitions
  1. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
  2. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  3. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  4. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  5. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  6. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
Trading Center