Hands-off investor

An investor who has a large stake in a company, but does not wish to play an active role in the management of the corporation.

Similar financial terms

Hands-on investor
An investor who has a large stake in a corporation and takes an active role in its management.

Institutional investors
Investors other than individuals, such as pension plans, banks, mutual funds, and life insurance companies. Because such investors buy large blocks of shares, they are often given substantial trading cost discounts.

Retail investors individual investors
Small investors who commit capital for their personal account.

Foreign Investor in Real Property Tax Act of 1980
Under FIRPTA (Foreign Investor in Real Property Tax Act of 1980), and the Economic Recovery Act of 1981, unless an exemption is granted by the IRS, upon the sale of real property owned by offshore (foreign) persons, the agency, attorney or escrow officer handling the transaction is required to withhold capital gains taxes at the closing of the sale transaction. Unless withheld and submitted to the IRS, the party handling the sale transaction is personally liable for the taxes.

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Registered trader

A member of the exchange who executes frequent trades for his or her own account.


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