retail investor

Retail Investor

An investor who invests small amounts of money for himself/herself rather than on behalf of anyone else. Retail investors are the polar opposite of institutional investors, which are large firms who invest on behalf of clients. Some investment vehicles require minimum investments so as to discourage retail investors from them. Retail investors are thought to be risk-averse and poorly informed compared to other investors, though there is disagreement as to how true that is. See also: Odd-Lot Theory.

---

retail investor

An individual investor who buys and sells securities for his or her own account. Some brokerage firms specialize in serving retail investors while other brokerage firms strive to attract business from institutions that engage in large trades.

---

Retail investor. Retail investor refers to an individual who buys and sells securities for his or her own account through a traditional or online brokerage firm.

While some retail investors hold portfolios worth millions of dollars and others own just a few securities, they are different from institutional investors, such as pension funds, money managers, or financial services companies, who have discretionary control over at least $100 million in securities.

---

retail investor

An individual investor who buys securities through a stockbroker on online service. Contrast with institutional investor.