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Retail InvestorsRetail investors are everyday individuals who buy and sell stocks through brokerage or retirement savings accounts. Unlike institutional investors, these nonprofessionals trade for themselves with their own money. Retail investors may treat investing as a form of entertainment, a way to save for retirement, or a stream of additional income. Because they are typically not professionals and may have no formal training or education in investment, retail investors may be more susceptible to risk. Using their own funds, many retail investors start investing by opening a brokerage account through a traditional broker, like Vanguard or Fidelity, or by creating an account with an online broker, like Robinhood. Others choose to invest funds they have saved in a retirement savings account like a 401(k) or an IRA. The term "retail investing" got new life in 2020. Fueled by lockdowns, commission-free trading, and a growing community of investors on the social media platform Reddit's r/WallStreetBets, regular people began participating in the stock market at unprecedented levels, with thirty million new retail investors joining the stock market between 2021 and 2023. Retail investing activity accounted for 25% of the market total as of 2021 and hit a high point in February 2023, when $1.5B worth of stock poured into the market in a single week.Explore Retail Investors
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Retail investors can get exposure to commodities via various financial vehiclesWhile retail investors likely won't go out and purchase a bushel of commodity wheat to trade, they can get exposure to the commodities market via commodity ETFs sold on traditional stock exchanges like the NYSE and Nasdaq and other financial vehicles. There are benefits to adding commodities to a retail investor portfolio (such as a hedge against inflation and a typically low correlation with more traditional asset prices), experts caution that commodities are usually volatile investments. KiplingerRetail investors cannot directly invest in private credit funds—but other financial vehicles can offer exposure to the industryFor example, as some US regulations have loosened in recent years, retail investors have begun to get exposure to the private credit market via ETFs that invest in publicly traded financial vehicles with private credit exposure, such as BDCs. CNBCCostco's bullion program offers an attractive option for retail investors, experts sayAlthough Costco's gold bars often sell out, experts caution that the Costco gold rush was more "mob mentality" than sound investment. The bullion program is one way for retail investors to get exposure to the commodities market. KiplingerRetail investors are getting burned by long/short strategiesIn the US, many retail investors lack the SEC-mandated status (a high enough net worth, income, and other factors) to directly invest in hedge funds. The regulator considers hedge funds too risky for the masses. Hedge fund-like strategies have emerged as a workaround, despite potential pitfalls. The Hedge Fund JournalGameStop stock began a meteoric rise in January 2021, rallying from a low of $2.57 to as high as $438 when Keith Gill helped mobilize retail investors to drive prices higherKeith Gill was a financial advisor who posted on social media under usernames including "Roaring Kitty." Backing from Chewy founder Ryan Cohen, who became GameStop's CEO, took things up a notch. TheStreetMany retail investors exited the stock market after 2008, leading to a drop in individual market participationThat changed thanks to GameStop, federal stimulus checks, and strong corporate results in the first quarter of 2021. This chart plots how much retail investors poured into the market each day, reaching records in early 2023. Visual CapitalistElectronic trading transformed investing, ushering in a new era for retail investors in which average Americans could research stocks online and then use early platforms like StreetSmart and E-Trade to conduct their transactionsIn the early 1990s, stock brokerages knew that online trading would be a great equalizer, creating opportunities for more individuals to buy and sell stocks. MIT - Massachusetts Institute of TechnologyRetail investors are not professionals—they invest their own moneyFor retail investors, the stakes may seem higher and more personal. Critics say that this dynamic means that retail investors are more susceptible to behavioral biases that could lead them to make poor decisions when it comes to buying and selling assets. For instance, fear of missing out could cause a retail investor to buy a stock that is popular but not a financially worthy investment. InvestopediaCharles Schwab kick-starts zero-commission era for retail investors Throughout history, retail investing was often too expensive for many individuals. That’s because investors owed the cost of the trade as well as the commission and fees due to the broker. Charles Schwab revolutionized the retail investing landscape in 2019 when it announced it would slash all fees on stock trading. This quickly prompted other brokerages to follow suit. Read more in this article. InvestopediaRetail investors are average joes, while institutional investors often move billions of dollars a dayRetail investors often trade 100 shares at a time, while institutional investors trade 10,000 or more. The biggest difference is that, unlike retail investors, institutional investors are professionals who are trading someone else’s money. InvestopediaRetail investors are individuals who trade stock for themselvesInstitutional investors, on the other hand, are investing for someone else. There are big differences between the two, one being that institutional investors can be granted certain special treatment (like being able to purchase IPOs right away). SofiRead how Vanguard's founder used the S&P 500 to revolutionize retail investingJohn Bogle, the founder of The Vanguard Group, created a fund that tracked the S&P 500 in 1976. That fund created an unprecedented opportunity for individual retail investors, brought down fees across the board, and popularized the belief that passive, low-cost index fund investments would outperform actively managed portfolios long-term. WhartonOld credit cards can be made into guitar picks, phone stands and moreExperts recommend always cutting through the chip and the card number when disposing of expired credit cards, as the magnetic strip, the chip, and the card number all contain information that thieves might be interested in. The Motley FoolWalmart was the first traditional retailer to crack the $1T clubIn early 2026, the company joined major tech companies Nvidia, Apple, and Meta (among others) as one of the rare firms with a market capitalization beyond $1T. See the latest top companies here. InvestopediaMany economists see Black Friday as a litmus test for consumer confidenceSome investors and analysts look at Black Friday’s sales numbers as a way to gauge the overall health of the retail industry—and consumer confidence at large. However, others don’t believe Black Friday results have a particularly significant impact on markets, arguing that the figures only cause short-term gains or losses. InvestopediaThe term ‘Black Friday’ originally referred to a 1869 US gold market crashAfter financiers Jay Gould and James Fisk attempted to corner the US gold market, the market crashed on September 24, 1869, bankrupting thousands of investors and sending stock prices plummeting by 18%. That day became known as “Black Friday” long before the unofficial retail holiday emerged. CNNMultiple business choices may have hindered Sears’ financial successThere’s no shortage of potential culprits for Sears’ death, from hedge fund manager Eddie Lampert, to Amazon, to the 2008 stock market crash. InvestopediaExplore a Sears historical timelineSears has existed for over 130 years, and is remembered for much more than its 2018 bankruptcy, from the Sears and Roebuck’s catalog to Discover Card and Allstate Insurance. HISTORYSears filed for Chapter 11 bankruptcy in 2018Although the retailer may have failed financially speaking, some argue that longevity in itself is a success—the brand operated for over 130 years before that bankruptcy filing, after all. The AtlanticScroll through a Sears historical timeline, starting in the year 1886The Sears story starts with railroad worker Richard Sears purchasing a declined shipment of watches for a discounted price. An interactive historical timeline chronicles the history of Sears from then onwards. CNNCathie Wood is one of the most famous modern figures in ETF investingCathie Wood is the fund manager and stock picker behind Ark Invest and its flagship Ark Innovation ETF. Her strategy centers around disruptive technology, and she’s made bold bets on cryptocurrency and companies like Tesla, Robinhood, and Nvidia. Wood has a loyal following of retail investors who watch her daily trades religiously. CNBCETFs are rising in popularityWhile less than half of retail investors hold ETFs in their portfolio, this figure is up dramatically in recent years, and experts forecast continued adoption as more options hit the market and total ETF assets under management continue to grow. State Street Global AdvisorsHedge funds make money from imposing steep fees on investors, as well as from investment performanceHedge funds often operate on a "2 and 20" model: Investors pay fund managers a 2% management fee, and the hedge fund keeps 20% of their profits. (The 2% is imposed annually, irrespective of performance.) Hedge funds are known for chasing big returns—and taking big risks to get them. This explainer not only breaks down how they work in detail, but also the strategy first introduced in 1949 that still shapes hedge fund investing today.
1440 DailyAn S-1 reveals financial and other details to the public, often for the first time, when filing for an IPOTo file for an IPO, a company must file a registration form called an S-1 or prospectus with the US Securities and Exchange Commission. S-1s detail a company's current business model, competitive landscape, and other financial information. InvestopediaIn early 2021, GameStop's stock surge brought retail investing into the spotlightUsing platforms like Robinhood, everyday investors became a growing presence in financial markets during the Gamestop short squeeze, revealing the influence retail investors can have on the market. 1440Learn how to build a retail investing toolkit Retail investors may not have the same resources institutional players do, but thanks to the internet, they can access several free tools that provide a leg up. These tools do everything from recommending portfolio allocations to helping investors screen stocks. KiplingerHow fee-free Robinhood makes moneyRobinhood is both loved and hated by retail investors. Although its mobile app is easy to use and transactions on its platform are fee-free, many individuals have taken issue with a controversial practice that drives 75% of its revenues. Robinhood uses payment for order flow, essentially taking payment from other brokerages to redirect users’ trades. Read up on how PFOF works here. ReutersRetail investing by the numbers When average Americans began pouring into the stock market, Wall Street wasn’t sure if its new guests were there to stay. But at the end of 2023, Public confidently declared that retail investors “weren’t going anywhere” after 30 million new individuals began buying and selling stock. Download the report to learn more here. PublicThe world’s first publicly traded company was the United East India Co.In an effort to best Spain and gain access to valuable trade in Asia, the Dutch Republic launched the VOC, or the United East India Co. The company held an initial public offering in 1602, allowing “subscribers” to choose how much they wanted to invest in the new venture. It was open to all residents of the republic, making this the first opportunity for retail investors in the world. BritannicaLook inside a retail investor's portfolioOnline investing platform eToro conducted a survey of retail investors in June 2024. It explored what assets they held and what types of stocks they liked to purchase. The most commonly held asset was cash, with 76% of retail investors holding cash in their portfolios. The next most popular asset was domestic stocks, with 49% of investors. eToroWhile day trading has risen in popularity in recent years, the SEC warns it is a speculative strategy that can cause big lossesA day trader is anyone who buys and sells a stock within the same trading day. They quickly move in and out of the market to try and profit. Some day traders are professionals, while others are retail investors. U.S. Securities and Exchange CommissionExplore a step-by-step guide for getting started as a retail investorInstead of purchasing individual stocks and bonds, new investors may want to start in funds that track an index—like the S&P 500—or that hold a group of themed stocks. BankrateThere’s a solid argument to be made that Macy’s was the inventor of the retail SantaThe Macy’s website claims that retail Santas—the Christmas icons who invite children to meet them at department stores and malls around the holidays—have been visiting the store since the 1860s. The EnterpriseJust because a big name company is going public doesn’t guarantee a successful stockA reporter dove into how highly anticipated IPOs can still be risky, and why retail investors should be wary of investing right away. CNBC TelevisionVenture capitalists were once bullish on DTC brandsWhile a physical store can only hold so many objects, online retailers without the limits of four walls that could sell their products direct-to-consumer could theoretically be great investments. But they didn’t always provide investors with expected returns. Retail DiveAccredited investors are people or other entities allowed to participate in investments that aren’t registered with the SECThe accreditation is meant to protect retail investors from potential losses. Financial professionals with Series 7, 65, or 82 licenses qualify, but so do individuals with over $1M in net worth. NerdWalletA short biography of Apple cofounder Steve JobsSteve Jobs led Apple for almost a quarter century, first from 1976 through 1985 and then from 1997 through just before his death in 2011. A brief synopsis of his career underscores the impact he made during that timespan, across everything from technology to smartphones, moviemaking, retail and much more. National Inventors Hall of Fame