The required rate of return (hurdle rate) is the minimum return that an investor is expecting to receive for their investment.
An investor is someone who allocates financial capital with the expectation of future profits or to gain an advantage. With this allocated capital, most of the time, the investor buys some kind of asset.
- The three types of investors in a company are pre-investors, passive investors, and active investors. Pre-investors are people who are not professional investors.
- These include friends and family, who may be able to commit a small amount of capital to your business.
- An investor is someone who invests money in an entity such as a business to obtain a financial return. The main goal of any investor is to minimize risk and maximize profits. This is in contrast to a speculator who is willing to invest in a risky asset in the hope of getting a higher return.
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