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==Types of investors== There are two types of investors: [[retail investor]]s and [[institutional investor]]s.<ref>{{cite web |last=Palmer |first=Barclay |date=August 11, 2023 |title=Institutional vs. Retail Investors: What's the Difference? |url=https://www.investopedia.com/ask/answers/06/institutionalinvestor.asp |website=[[Investopedia]] |access-date=October 5, 2023 }}</ref> A ''retail investor'' is also known as an ''individual investor''.<ref>{{cite web |last=Hayes |first=Adam |title=Retail Investor Definition |url=https://www.investopedia.com/terms/r/retailinvestor.asp |website=Investopedia |access-date=December 17, 2020 }}</ref> There are several sub-types of institutional investor: * [[Pension plan]]s making investments on behalf of employees * [[Business]]es that make investments, either directly or via a captive fund * [[Endowment fund]]s used by universities, churches, etc. * [[Mutual fund]]s, [[hedge fund]]s, and other funds, ownership of which may or may not be [[Public company|publicly traded]] (these funds typically pool money raised from their owner-subscribers to invest in securities) * [[Sovereign wealth fund]]s * Large money managers<ref>{{cite web |title=Institutional Investor β Overview, Types, Investing Risks |url=https://corporatefinanceinstitute.com/resources/knowledge/trading-investing/institutional-investor/ |website=Corporate Finance Institute |access-date=December 17, 2020 }}</ref> Investors might also be classified according to their [[Investor profile|profiles]]. In this respect, an important distinctive [[Behavioral economics|investor psychology]] trait is [[Risk aversion|risk attitude]].
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