Retail investors are individual investors who buy and sell securities, such as stocks and bonds, for their personal accounts rather than for an institution. They typically invest smaller amounts of money compared to institutional investors, like mutual funds or pension funds. Retail investors often use online trading platforms to manage their investments and may rely on various resources, including financial news and social media, to make informed decisions.
These investors play a significant role in the financial markets, contributing to overall market liquidity. Retail investors can participate in various investment strategies, from long-term buy-and-hold approaches to short-term trading, depending on their financial goals and risk tolerance.