DEFINITION of 'Promoter'

An individual or company that, for a fee, helps raise money for some type of investment activity. Most often, promoters raise money for a company through offering investment vehicles other than traditional stocks and bonds, such as limited partnerships and direct investment activities. Often times, these promoters are paid in company stock or free entrance into the investment activity as compensation for their work in raising funds from others.


While there are plenty of legitimate investment promoters out there, one should always do their homework before investing in the activities they represent. Due to the fact that many of the investments promoted by these individuals are not formally registered with the Securities and Exchange Commission, an investment area plagued with fraud, professional promoters have been linked to an inordinately high number of investment scams and litigation.

  1. Limited Partnership - LP

    Two or more partners united to conduct a business jointly, and ...
  2. Ponzi Scheme

    A fraudulent investing scam promising high rates of return with ...
  3. Pyramid Scheme

    An illegal investment scam based on a hierarchical setup. New ...
  4. Master Limited Partnership - MLP

    A type of limited partnership that is publicly traded. There ...
  5. Affinity Fraud

    A type of investment scam in which a con artist targets members ...
  6. Collateralized Loan Obligation ...

    A security backed by a pool of debt, often low-rated corporate ...
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