There are five different types of professional investors

There are five different types of professional investors -...

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There are five different types of professional investors : The Accredited Investor. As defined by the law, accredited investors are individual investor that earns at least $200,000 in annual income ($300,000 for a couple) and/or has a net worth of $1 million. An accredited investor has access to many lucrative investments that, because of their risk may be legally off-limits to people of lesser income. Although usually financially educated, accredited investors are not necessarily fully literate. They may be content with security and comfort rather than wealth, and may rely on advisors to develop and implement their financial plans. The Qualified Investor. This investor is well versed in either fundamental or technical investing and so there are two types of qualified investors - the fundamental investor and technical investor . Fundamental investing requires the ability to assess a company’s potential by reviewing financial statements, tracking the industry the company represents, and calculating how changes in interest rates and the economy as a whole could affect profitability. The fundamental investor uses financial ratios, which you’ll learn all about later, to assess the strength of a company he or she is considering as an investment. Technical investing is different—it is based on knowledge of the sales history of a
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This note was uploaded on 07/23/2011 for the course ACCT 553 taught by Professor Seda during the Spring '10 term at Keller Graduate School of Management.

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There are five different types of professional investors -...

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