retail investors

Retail investors are individual investors who buy and sell securities for personal accounts rather than institutional or business purposes. They usually aim to achieve personal financial goals such as saving for retirement, funding education, or generating income. Retail investors have varying levels of financial knowledge, ranging from beginners who rely on financial advisors to seasoned investors managing their own portfolios. To protect retail investors, regulatory frameworks such as Regulation Best Interest (Reg BI) require brokers to prioritize their clients' best interests, while organizations like the Securities and Exchange Commission (SEC) and FINRA enforce rules to promote transparency, fairness, and investor education.

See: 17 CFR § 240.15l-1 Regulation Best Interest (BI) Definition of Retail Customers.

[Written in December of 2024 by the Cornell Law School Securities Law Clinic]

Wex

• COMMERCE
• commercial activities
• finance
• securities
• commercial transactions
• wex definitions