Types of Promoters

Types of Promoters

Promoters may be classified into the following types.

Financial promoters

Financial institutions, like industrial banks, or investment banks may take up the promotion of a company with a view to finding opportunities for investment,

Professional promoters

There are firms which specialize in company promotion, including its flotation, incorporation, and before handing it over to the shareholders or their representatives for the company.

Entrepreneur promoters

They conceive the idea of a new business unit, do the groundwork to establish it and may subsequently become a part of the management. They are both promoters and entrepreneurs.

Occasional promoters

They are not engaged in promotion work on a regular basis. They take up the promotion of some company and once it is over they go to their original profession. For instance, engineers, lawyers etc. may float some companies. These promoters take interest in floating some companies.