Stock Market Basics

Investor

A stock market participant who typically buys shares to hold for months or years, aiming for long-term growth.

An investor is someone who buys shares (or other assets) with the intention of holding them for an extended period — typically months, years, or even decades — based on a belief in the underlying company’s long-term growth and value.

What Investors Focus On

  • The company’s business model, profitability, and growth prospects
  • Industry trends and competitive position
  • Management quality and corporate governance
  • Long-term financial health, rather than short-term price movements

Investor vs Trader

Both use the same stock market, but differ mainly in time horizon and focus. See the full comparison table in What Is the Stock Market? A Complete Beginner’s Guide.