What is Investor Ownership?

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Investor ownership or ownership investments mean the capacity of an investor to become a partial owner company’s assets or property by purchasing stocks, real estate, and mutual funds to have a certain amount of share in profits gained by the company. The investor usually buys shares with the hope that their value will increase over time and generate earnings.

Through investor ownership, the investor can influence some of the decisions concerning investments.  It is considered the most profitable type of investment; however, it is also too risky because your earnings will depend on the status of the business or company you invested with.

Investor ownership could be classified into various common types:

  • Stocks – it is a type of ownership investment where the investor has ownership of shares in a particular company. Every time the company is performing well, investors will be attracted to buy shares. However, if the company is losing, then the value of your share will also go down.
  • Real Estate – this type of ownership investment is when you acquire houses, lots, and dwellings for purposes of leasing or selling them to generate profits.
  • Mutual Funds – this is where a pool of money is collected from investors that will be invested in securities such as bonds, stocks, money markets, and other assets.
  • Business Ownership – it is when you invest your money to sell goods and services to acquire profit. The return of investment on this type of investor ownership will come once your business starts to grow and generate income.

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Pieter Borremans

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