A Retail Investor is an individual investor who buys and sells securities, such as stocks, bonds, and mutual funds, in the retail market. Retail investors are typically non-professional investors who invest for their own personal financial gain rather than for a company or institution. They may be individuals who invest a small amount of money on a regular basis, or they may be individuals who make larger, less frequent investments.Retail investors are typically smaller investors compared to institutional investors, such as pension funds, hedge funds, and mutual funds, which have significantly more resources and investment capital at their disposal. Retail investors may also be less experienced and less knowledgeable about the financial markets than institutional investors.Retail investors generally participate in the market through a brokerage account, which allows them to buy and sell securities online or through a financial advisor. They may also participate in the market through investment products such as mutual funds or exchange-traded funds (ETFs), which provide them with exposure to a diversified portfolio of securities.The market impact of retail investors can vary depending on the size and activity of this investor group. In some cases, retail investors may follow trends and behaviors that are similar to those of institutional investors, but they may also exhibit their own unique patterns of behavior that can influence market dynamics.
