Accounting Dictionary


Investors are the owners of a business.

When a person pays money to obtain an ownership interest in a business, they are called investors. They are entitled to a share of the profits from the business. If the business is a corporation the investor will be issued common stock as evidence of his ownership and be called a shareholder. If the business is a partnership, the investor is called a partner. If the business is an LLC, the owner is called a member.

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