Shareholder vs. Investor

Difference Between Shareholder and Investor

Most of us may know that what are investors and shareholder but if asked about the difference between them, many of may not be able to answer with confidence. This article is aimed to clarify the difference between the two.

A shareholder buys shares of a company listed in the stock exchange and trade in them publicly. He trades in the shares to get good returns. He is also an investor but he invests in many companies by buying their shares.

Investor is a very broad term and it includes everyone whose money is invested in a business. Even if you invest your money in fixed deposit or you buy property, you will be called an investor. Investor can have different types of investments which are his assets. These may or may not include shares. Shareholders are investors but investors may or may not be shareholders.

Both, share holders and investors invest their money to get more out of their investment.

 

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