Profile of the Stock Exchange Market Investor

• How much money do you have for investing?
• How much risk can you support with those resources?
• What debts or obligations do you have?

Assets and liabilities are interrelated and eventually one affects the other to coordinate these assets and liabilities, with the help of the corresponding advisors or intermediaries (broker, insurance agent, accountant, etc.) the agent must understand how they are related to be able to join its assets and investments with its resources and liabilities for in this way to reach its financial objectives.

The investment, and in particular the investment on the stock exchange market, is only one piece of the total of the financial situations of the agent.

Within the agent’s financial plan, among others, there are the following items that are part of the game:

• Investment products of the private sector
• Insurance products
• Government financial assets
• Exposition to the tax rates
• Banking products (loans, mortgages. Etc.)

You must remember that there is no only image of an individual as an investor due that the conditionings (financial plan) that surrounds the agents are different in each case.

Profile of a Stock Exchange Market Investor
As said before, it is impossible to define the prototype of a stock exchange market investor due that there doesn’t exist a universal image of it. Its profile is very ample and any person may invest on the market. In the action range of the market there are:

• Big and small people
• Subjects that are willing to take risks and does that not
• Short and long term investors, etc.

That the access to the market   is so open doesn’t mean that everybody is willing to go to the stock exchange market. For example, the people who don’t have its basic needs covered (housing, pension, etc.)  won’t go, due that to invest in the market you must have a certain capacity for savings and almost never (save in the case of professional investors) to use external financing (Bank loans). One never knows how the market is going to react, even the people with more knowledge and experience are subject of unexpected fall on the value of the securities there are different options for placing your savings in accordance with your capacity (personal financial situation).

Actually, there are several hundreds of different securities that are quoted at the market, for all kinds of tastes: at a short or long term of high or low risk, of individual or collective investment, etc.

As a general rule:
In case of young or middle age people, those with reduced family needs, of those that count with greater assets, can invest in any of the mentioned alternatives.

Old age people (specially those that are retired), persons of low income and assets, or those with ample family needs, must only invest in low risk operations.