Retail Investor: A retail investor is an individual investor who trades in the stock market and other financial markets on their own behalf. They are often small players in comparison to institutional investors, but contribute to the efficient functioning of the financial system by providing liquidity to the markets. Retail investors come from all walks of life and have varying degrees of investing knowledge, ranging from novice traders to seasoned veterans. Although retail investors represent a small proportion of the overall trading activity, they play an important role in the markets through providing liquidity and helping to balance out buying and selling pressure.