Retail investors are individual, non-professional investors who buy and sell securities for their personal accounts. Their growing influence in financial...
A retail investor is an individual who buys and sells securities like stocks, bonds, or mutual funds for their personal account, not on behalf of an organization or institution.
They've significantly influenced market trends, notably through phenomena like 'meme stocks,' driving volatility and challenging institutional dominance with collective trading power via online platforms.
Popular tools include online brokerage apps (e.g., Robinhood, Fidelity), financial news websites, social media forums (e.g., Reddit's WallStreetBets), and various educational resources.
Potential rewards include high returns and portfolio diversification. Common risks involve significant capital loss due to market volatility, lack of professional advice, and susceptibility to emotional trading decisions.