Who is a stock investor, how is he different from stock trader?
When referring to the investment world, it’s common to hear words like “trading” and “investing” used interchangeably. In actuality, though, these activities are quite different. Both traders and investors participate in the same marketplace, but they are accomplishing very different types of tasks, and the strategies that they employ are also very different. Still, it’s essential that a marketplace have both traders and investors in order to properly function.
Stock traders are individuals (or entities) engaged in the trading of equity securities, or the transfer of other financial assets. Most common instrument amongst traders are Futures & Options. They work either for themselves or on behalf of someone else, and may operate as agents, hedgers, arbitrageurs, speculators, or investors.
Stock investors, on the other hand, are individuals (or entities) who use their own money to buy equity securities. The goal of the stock investor is to gain returns, which come in the form of income, interest, or appreciation in value / capital gains) as a result of their investing in stocks. Most commonly used instruments are Equity shares, preference shares & subscribing to rights issue. Stock investors cease opportunities that comes with value investing at the right time.
What is value mean in stock investing?