For a long time, investment advisors were called “brokers”. They’re the people you see in movies like Oliver Stone’s Wall Street or Martin Scorsese’s The Wolf of Wall Street. However, not all of them are bloodthirsty “wolves”.
Investment advisors are responsible to advise their clients on stock market investments. Investment advisors have the right to carry out purchases or sales of securities such as stocks or bonds on behalf of their clients. They can also buy and sell mutual funds.
There are a wide variety of investment advisors. Some simply follow your instructions, while others may offer an extensive range of services such as financial planning. Increasingly, however, investment advisors are limiting themselves to recommending the securities chosen by their institution’s portfolio manager.
If a company was an apple pie, a stock would be a slice of the pie. In short, a stock is a slice of a company. Everyone who owns a piece of a company has the right to share a portion of the profits of the company. Read more
An activist investor is a someone who buys many shares in the same company in order to influence how it is managed. For example, if you think that McDonald’s would be more successful if it sold tuna Hamburgers, you could buy 20% of McDonald’s shares and become the majority shareholder. Read more