High Net Worth Individual (HNWI)
Who is a High Net Worth Individual (HNWI)? A high net worth individual (HNWI) refers to an individual with a net worth of a minimum of $1,000,000 in highly liquid assets, such as cash and investible assets. Individuals with less than $1,000,000 but more than $100,000 are called mass affluent investors. A very high net...
Short-Term vs Long-Term Investors
Who are Short-Term Investors vs Long-Term Investors? In this article, learn more about short-term investors vs long-term investors. Short-term investors are investors who invest in financial instruments intended to be held in an investment portfolio for less than one fiscal year. Conversely, long-term investors represent people investing in long-term financial instruments that they hold for...
Myopic Behavior
What is Myopic Behavior? Myopic behavior represents the behavior of an investor who acts in accordance with what he or she wants right now. In other words, investors demonstrate myopic behavior when they care only about short-term results with absolutely no consideration of how a certain action may affect them in the future. Myopic investors...
Capital Note
What is a Capital Note? A capital note is a short-term debt instrument (security) mainly issued by a corporation to pay off short-term obligations that are due in less than one fiscal year. Since capital notes are unsecured fixed-income securities, an investor bears a high level of risk from buying the notes. Capital noteholders are...
Convertible Note
What is a Convertible Note? A convertible note refers to a short-term debt instrument (security) that can be converted into equity (ownership portion in a company). Convertible notes are often used by seed investors who invest in startups. They are structured as loans to convert them to an equity stake in the company in the...
