"Retail investors made Rs 1.9 lakh cr in market rally", was the news in some major financial newspapers. The term "retail investors", as used in this headline, means which of the following types of stock market investors?

Promoters of Companies

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Individuals

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Foreign Institutional Investors

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Mutual Funds

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Solution

The correct option is C Individuals
A retail investor is an individual who purchases securities for his/her own personal account rather than for an organisation . Retail investors typically trade in much smaller amounts than institutional investors such as mutual funds, pension funds etc, and trade less frequently.
Hence the term "retail investors" in the newspaper headline means Individuals in stock market investors.

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