Investor

An investor is typically distinct from a trader or arbitrageur. Whereas an investor commits capital for long-term gain, a trader generally seeks to generate short-term profits by repeatedly buying and selling securities over and over again. Possibly focusing on a specific event driven investment strategy such as merger arbitrage or statistical arbitrage

Investors typically generate returns by investing capital in more traditional vehicles such as either equity or debt instruments. Equity investments entail ownership stakes in the form of company stock traded on a stock exchange that may pay a dividend in addition to generating capital gains. Debt investments, which are loans to either individuals or firms, receive a periodic interest payment as well as repayment of the principal. Loans can also be made to the government, known as treasuries and are generally considered the safest of the types of investment which can be contrasted with lower grade bond investments such as junk bonds. 

Investors can have varying levels of risk tolerance, capital, styles, preferences, diversification requirements as well as different time frames. Investors who prefer very low-risk investments such as treasuries will make be rewarded with low level conservative gains. More speculative investors, however, may be inclined to take on additional risk in the hope of producing a higher return. This may involve currencies or investments in emerging market stocks.