You may notice that investor is not a new word in today’s life, but what is an investor in practice? How many types of investors? or what are related issues? These are things that not everyone can understand. Let’s check the answer in this article.
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1. What is investor?
A group of persons who participate in one or more investments under various investment types is referred to as an investor. They might be a person, a company, or an organization.
The majority of investors put their money into businesses to profit. Furthermore, an investor can be a group of persons who are members of a government unit who make public investments to benefit society, such as building civil and welfare works.
Public and private credit institutions, such as banks, financial corporations, credit funds, financial analysts, and the financial press, are all examples of investors. Angel,…
In the financial business, the phrase also refers to a group of people or corporations who regularly buy securities, stocks, or bonds to earn a profit in exchange for contributing capital to help a firm grow there. This expression also refers to people or businesses who buy and retain assets for a long time to generate capital gains rather than short-term income.
2. Type of Investors
Accordingly, investors can be divided into the following groups:
1- Domestic investors
Domestic investors are individuals with Vietnamese nationality or economic organizations that do not have foreign investors as members/shareholders.
2- Foreign investors
Similar to domestic investors, foreign investors are individuals with foreign nationality or organizations established under foreign law that conduct investment and business activities in Vietnam.
3- Economic organizations with foreign investment capital.
Foreign-invested economic organizations are understood as economic organizations with foreign investors as members/shareholders.
3. Popular type of investment
3.1 Investments to enable the establishment – First type of investment
Investments to enable the establishment of economic organizations is a form in which investors put capital and assets to build a new enterprise. Besides, a business establishment or contributing a capital portion to take over the management of an existing economic organization also works as a type of investment.
This is a popular form of investment and is chosen by investors with significant capital. Investments to establish economic organizations are classified into investments in establishing a single-owner financial organization and assets in establishing a multi-owner economic organization.
3.2. Investment in the form of capital contribution, taking stock in economic organization
Capital contributions and share purchases occur when economic organizations are operating on the stock market. This is carried out to raise the scale (raising the charter capital) or simply change investors in the business organization.
With this type of investment, investors do not need to spend time, effort, or money to start a new economic organization. However, they only pay a small amount of money to become a company member.
This membership grants the owner the right to manage, profit, and assume risks in proportion to the capital invested in the economic organization. This is a type of investment that knowledge investors prefer.
3.3 Invest by way of a BCC contract
A business cooperation contract (or BCC contract) is signed between investors. This cooperation is aimed at business cooperation, profit sharing and product distribution without establishing a business organization.
The above is the general business knowledge about the types of investment and related information. Hope this article will be helpful to you when you are researching this topic.
