- Individual investors are further categorized based on the amount invested as retail, who invests less than Rs. 2 lakhs in a single issue.
- Non-institutional buyers (NIBs), who invest more than Rs. 2 lakhs in a single issue.
- The other categories of investors are classified as institutional investors and are also known as qualified institutional buyers (QIBs)
Generally a retail trader falls in the category of individual investors as they generally invest less than 2 Lakh in a single issue and it is the power of QIBs and NIBs who can really make or break even a bad IPO. However power of retail participation provides the depth to the stock market. Thus all are equally important for successful functioning of any kind of economic market.