Editing Investor (section)

==Role of the financier==
{{Redirect|Financier|other uses}}

A '''financier''' ({{IPAc-en|f|ɪ|n|ə|n|ˈ|s|ɪər|,_|f|ə|-|,_|-|ˈ|n|æ|n|-}})<ref>{{Cite web|url=https://www.ahdictionary.com/word/search.html?q=financier|work=The American Heritage Dictionary|title= financier|publisher=Houghton Mifflin Harcourt Publishing Company}}</ref><ref>{{Cite web |url=https://www.ldoceonline.com/dictionary/financier |title=financier &#124; meaning of financier |work=Longman Dictionary of Contemporary English }}</ref> is a person whose primary occupation is either facilitating or directly providing investments to up-and-coming or established [[companies]] and [[businesses]], typically involving large sums of money and usually involving [[private equity]] and [[venture capital]], [[mergers and acquisitions]], [[leveraged buyout]]s, [[corporate finance]], [[investment banking]], or large-scale [[asset management]]. A financier makes money through this process when their investment is paid back with interest,<ref name="Freixas">Xavier Freixas, Jean-Charles Rochet, ''Microeconomics of Banking'' (2008), p. 227.</ref> from part of the company's equity awarded to them as specified by the business deal, or a financier can generate income through [[Commission (remuneration)|commission]], performance, and management fees. A financier can also promote the success of a financed business by allowing the business to take advantage of the financier's reputation.<ref>{{cite book |last=Landström |first=Hans |title=Handbook of Research on Venture Capital |date=2007 |page=202 }}</ref> The more experienced and capable the financier is, the more the financier will be able to contribute to the success of the financed entity, and the greater reward the financier will reap.<ref>{{cite book |first=Edwin H. |last=Neave |title=Modern Financial Systems: Theory and Applications |date=2009 |page=8 }}</ref> The term, financier, is [[French language|French]], and derives from ''[[finance]]'' or ''payment''.

Financier is someone who handles money. Certain financier avenues require degrees and licenses including [[venture capitalist]]s, hedge fund managers, trust fund managers, [[accountant]]s, [[stockbroker]]s, [[financial advisors]], or even public [[treasurer]]s. Personal investing on the other hand, has no requirements and is open to all using the [[stock market]] or by word-of-mouth requests for money. A financier "will be a specialized financial intermediary in the sense that it has experience in [[Liquidation|liquidating]] the type of firm it is lending to".<ref name="Freixas" />

===Perceptions===
Economist [[Edmund Phelps]] has argued that the financier plays a role in directing capital to investments that governments and social organizations are constrained from playing:

{{blockquote|[T]he pluralism of experience that the financiers bring to bear in their decisions gives a wide range of entrepreneurial ideas a chance for insightful evaluation. And, importantly, the financier and the entrepreneur do not need the state's or social partners' approval. Nor are they accountable later on to such social bodies if the project goes badly, not even to the financier's investors. So projects that would be too opaque and uncertain for the state or social partners to endorse can be undertaken.<ref>{{cite web |url=http://www.europainstitut.at/upload/publikationen/publikation_39.pdf |title=Dynamic Capitalism |first=Edmund S. |last=Phelps |author-link=Edmund Phelps |publisher=[[Europa-Institut]] |date=October 10, 2006 }}</ref>}}

The concept of the financier has been distinguished from that of a mere capitalist based on the asserted higher level of judgment required of the financier.<ref>{{cite book |editor-first=Sterling |editor-last=Elliott |title=Good Roads: Devoted to the Construction and Maintenance of Roads |date=1896 |volume=24 |page=366 }}</ref> However, financiers have also been mocked for their perceived tendency to generate wealth at the expense of others, and without engaging in tangible labor. For example, humorist [[George Helgesen Fitch]] described the financier as "a man who can make two dollars grow for himself where one grew for someone else before".<ref>{{cite book |last=Fitch |first=George |title=Vest Pocket Essays |date=1916 |page=123 }}</ref>