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Who is investor?


An investor is a person who gives his money for earning in the form of interest or dividend. The amount which is given by investor is called investment. The main aim of investment is to utilize the money for earning purposes.
When person earns money, it is divided into two parts. In economics , first part is called consumption and second part is called saving and when some amount of saving is further gives to other company or person for earning purpose , that is called investment . When, this amount is invested in own business, then, this amount becomes capital.
Capital is just investment of businessman and businessman is separated from business. That is the reason; capital is shown in the liability side of balance sheet. There are many factors which affects investment and investor always see the risk of his money and try to invest his money in such project where is risk and earning are on optimal position.

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Accounting Education: Who is investor?
Who is investor?
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