Republic of uzbekistan andijan machine-building institute fundamentals of business management

Type of investors.There are two types of investors: institutional and individual investors. 
Institutional investors - are experts and are paid to manage the money of strangers. They 
are hired by financial institutions, such as banks, insurance companies, mutual and pension funds, 
as well as large non-financial corporations, and in some cases private individuals. Financial 
institutions invest large sums of money in an effort to provide good returns to their depositors. For 
example, the bank's trust department must pay sufficient income on the funds entrusted to it; A life 
insurance company must invest premiums to pay premiums to customers and, in the event of the 
customer's death, to their heirs and beneficiaries. Nonfinancial companies, such as industry or 
commerce, also often have excess cash. 
Individual investors - dispose of their personal funds for their own financial interests. An 
individual investor is often interested in seeing a return on his or her idle cash to provide income 
in retirement or to provide financial stability for his or her family. Most individual investors are 
only concerned with what to fill their personal stock portfolio with, or how to secure their personal 
retirement fund. Those who can invest large sums of money, due to their lack of professional 
training in the field of investment, entrust the management of their funds to institutional investors, 
for example, trust departments of banks or qualified investment advisers. The basic working 
principles for institutional and individual investors are the same: 
Invest.Specially selected financialInvesting is the process of placing money in weapons in 
order to increase their value or gain a positive return. This activity has great economic value, it can 
be performed as a logical sequence of expenses, the result of which is earning income. In recent 
times, a number of innovations have been introduced that encourage investment and make this 
process more acceptable.