What is a 'Retail Investor'

A retail investor is an individual investors who buy and sell securities for their personal account, and not for another company or organization.

Also known as an "individual investor" or "small investor".

BREAKING DOWN 'Retail Investor'

Retail investors buy in much smaller quantities than larger institutional investors.

RELATED TERMS
  1. Institutional Investor

    A non-bank person or organization that trades securities in large ...
  2. Blocked Period

    A period of time in which an investor’s securities are prevented ...
  3. National Retail Federation - NRF

    A retail trade association with members from all phases of retail ...
  4. Personal Use Property

    A type of property that an individual does not use for business ...
  5. Retail Sales

    An aggregated measure of the sales of retail goods over a stated ...
  6. Odd Lot Theory

    A technical analysis theory/indicator based on the assumption ...
Related Articles
  1. Investing

    Pitfalls Of Copycat Investing

    While it may sound good in theory to attempt to mimic the investment style and profile of a successful institution, it is often much harder (if not impossible) to do so in practice.
  2. Trading

    What is the Difference Between Institutional Traders and Retail Traders?

    The differences between retail and institutional traders lie in the size of the trade, level of sophistication, and the speed of transactions.
  3. Investing

    The Difference Between Investing and Speculating

    The difference between investing and speculating may surprise you.
  4. Investing

    The Pros And Cons Of Institutional Ownership

    These big players can both create and destroy value for shareholders.
  5. Investing

    Consumer Spending As A Market Indicator

    What people buy and where they shop can provide valuable information about the economy.
  6. Insights

    What is the Retail Sales Report?

    The retail sales report is a measurement of the goods that retailers sell based on a sampling of different stores.
  7. Trading

    The Roles Of Traders And Investors In The Marketplace

    Discover how these two groups work together to keep the market functioning properly.
RELATED FAQS
  1. Can retail investors buy commercial paper?

    Find out whether retail investors buy commercial paper, and learn about the restrictions that often prevent individual investors ... Read Answer >>
  2. What are the major categories of financial institutions and what are their primary ...

    Understand the various types of financial institutions that exist in today's economy, and learn the purpose each serves in ... Read Answer >>
  3. What has the retail sector evolved to its current structure?

    Find out about the retail sector, the size of United States and global retail markets and why online retailers are changing ... Read Answer >>
  4. What countries represent the largest portion of the global retail sector?

    Learn about the five countries that dominate the global retail sector: Japan, Germany, the United Kingdom, China and the ... Read Answer >>
  5. How attractive is the retail sector for a growth investor?

    Learn how retail's volatile nature makes it attractive to growth investors, and discover the strategies these investors employ ... Read Answer >>
Hot Definitions
  1. Collateral Value

    The estimated fair market value of an asset that is being used as loan collateral. Collateral value is determined by appraisal ...
  2. Fiduciary

    A fiduciary is a person who acts on behalf of another person, or persons to manage assets.
  3. Current Account

    The difference between a nation’s savings and its investment. The current account is defined as the sum of goods and services ...
  4. Liability

    Liabilities are defined as a company's legal debts or obligations that arise during the course of business operations.
  5. Quick Ratio

    The quick ratio is an indicator of a company’s short-term liquidity. The quick ratio measures a company’s ability to meet ...
  6. Covered Call

    An options strategy whereby an investor holds a long position in an asset and writes (sells) call options on that same asset ...
Trading Center