Retail Investor

Retail Investor

A retail investor is an individual who buys and sells Securities, mutual funds, or other financial instruments for their personal account, rather than for an institution. Retail investors typically have less Capital and access to resources compared to Institutional Investors, and they are subject to different regulations.

Examples of retail investors include:

• A person Investing in Stocks through a Brokerage Account for retirement savings.
• An individual purchasing mutual funds via a Financial Advisor.
• A small investor trading cryptocurrencies through an online platform.

Cases involving retail investors:

• The GameStop Stock surge in 2021, where retail investors coordinated on Social Media to drive up the Stock price.
• Instances of retail investors suing brokerage firms for halting trades during market volatility.