Investment is risk. There is no investment that is completely secure and completely safe. Stocks, Bonds, Mutual Funds, Real Estate, every investment option holds the risk of losing money. The objective of investing one’s wealth is to generate income for the future. People fear that investing their wealth is putting their future at risk, a fear is holding down the success of that wealth. Wayne Gretzky, the greatest hockey player of all time, famously said, “ You miss one hundred percent of the shots you don’t take.” In 2008 the stock market crashed, and the modern fear of the stock market was established. Still today people remain afraid. These people are not taking their shots and are missing huge opportunities, leaving them out of the
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With the return of the money that was invested, income is brought in through the interest or dividends that the stock or bond pays back to its shareholders. If money is invested in a stock that pays dividends to share holders, even if the security does not go up in value, or goes down in value shareholders are paid through the dividend by just holding the security until there is opportunity to sell it at a profit. The investors money is now earning themself money and making an income. Investors buy stocks because they may increase in value. The investor who purchases shares of a company on the stock market, now owns a portion of that company whose value has a chance to increase over time. When an investors money is needed back, the stock can be sold through an exchange. If the security is actively traded there is an abundance of people to buy the stock being sold or sell the stock that is bought. If the value of the stock went up, then someone will buy it for more than it was purchased …show more content…
All these fixed income investments are generally not effected by stock market fluctuations. If the stock market goes down dramatically the value of fixed income investments generally remains stable. The risk with fixed income securities occurs when interest rates rise. When interest rates rise, the value of fixed income securities can go down in value. The income of the security remains the same, and
With the return of the money that was invested, income is brought in through the interest or dividends that the stock or bond pays back to its shareholders. If money is invested in a stock that pays dividends to share holders, even if the security does not go up in value, or goes down in value shareholders are paid through the dividend by just holding the security until there is opportunity to sell it at a profit. The investors money is now earning themself money and making an income. Investors buy stocks because they may increase in value. The investor who purchases shares of a company on the stock market, now owns a portion of that company whose value has a chance to increase over time. When an investors money is needed back, the stock can be sold through an exchange. If the security is actively traded there is an abundance of people to buy the stock being sold or sell the stock that is bought. If the value of the stock went up, then someone will buy it for more than it was purchased …show more content…
All these fixed income investments are generally not effected by stock market fluctuations. If the stock market goes down dramatically the value of fixed income investments generally remains stable. The risk with fixed income securities occurs when interest rates rise. When interest rates rise, the value of fixed income securities can go down in value. The income of the security remains the same, and