Individual investor
Individual investors refer to social natural persons engaged in securities investment. They are the most extensive investors in the securities market, with dispersion and liquidity. At the early stage of the development of the securities market, the market participants were mainly individual investors, that is, investors who bought and sold stocks as natural persons. Ordinary investors refer to investors who engage in stock trading as natural persons.
Recently, fund companies and securities firms received the Notice on Relevant Matters Concerning the Filing of Inquiry Objects and Placement Objects of Initial Public Offerings, which clarified the procedures for individual investors to become recommended inquiry objects for the first time.
According to the Notice, the lead underwriter may recommend no more than 10 individual investors as the recommended inquiry targets. The conditions for the lead underwriter to screen individual investors shall include, but not limited to, the scale of investment funds, professional skills, investment experience, credit record, investment preference, anti-risk ability and other requirements. The recommended individual investor shall have more than 5 years of investment experience and no record of violation of laws and regulations, and the funds used for investment shall be self-owned, and the lead underwriter shall check the legality of the source of investment funds. When selecting individual investors, the lead underwriter should give priority to self-owned customers who have strong research ability and risk tolerance, the scale of investment funds is suitable for the characteristics of new share subscription business, and have long-term cooperative relations with their own units and know each other.
The characteristics of individual investors include the following four aspects:
1. Limited funds;
2. Relative lack of professional knowledge;
3. Investment behavior is random, decentralized and short-term;
4. The flexibility of investment is strong.