What does it mean to be an investor?

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Posted by on Thursday July 12, 2012 9:3:15:

To invest or be an investor simply means putting your money into a business for the purpose of getting returns at a future date.

In this context, we could group full time investors into 2 groups:

- Active investor
- Passive investor

An active investor is someone who aside from putting his money into the business also plays an active role in running the business. This kind of investor may take a more active role like operations manager or general manager in order to keep a close eye on his money and he also gets additional pay for his efforts.

A passive investor on the other hand is one who just puts in his money and expects returns at a future date. He may or may not agree to accept the risks associated with the business.

In Nigeria, one could make money as an investor and there are a lot of businesses one can invest in. However there are more people who invest as active investors rather than passive investors due to the wide rich-poor gap and weak economy.

Examples of investors
- Shareholders
- Creditors
- Entrepreneurs and Sole proprietors
- Small business owners


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