Finance Perspective

The future positions for the stock market and real estate can be created from actions which occur now. The stock market is an exchange for buying and selling stock. People may invest in real estate company stock or real estate properties. Some rental rates can supply nice profits for the investors. A share of stock is an investment in a company. Shareholders may receive a payment if the company declares a dividend for any earned profits. Insider trading involves illegal stock trades with very private information about a company. People are supposed to make open trades with only public information. There are serious penalties for insider trading offenses which may bankrupt an investor.

Stock market investments have serious risks because businesses may not do so well. There are no guaranteed interest rates with shares of stock. The stock price may increase, decrease, or become worthless. Some companies may be wiped out. Bankruptcy does not leave any benefits for shareholders which own worthless stock. People could lose all of their money with stock trading. The other option could be that a company does extremely well. The shareholders may earn a tidy sum with regular dividends. No money is actually earned until the stock is sold at a higher price or used to generate a dividend.

A safer way to earn money is with a bank savings account. The interest income from savings accounts may seem much lower than some of the profits with stock purchases. There is much less risk with a bank savings account than with the possibility of a complete loss in the stock market. Most investment opportunities have higher potential profits with much larger risks. The shares of stock have values which may change daily. Analysis, insight, and luck may influence profits in the stock market. The shareholders have only theoretically earned income when the value increases for each stock share.

Many investors enjoy buying land and buildings for development. Excellent tenants may provide very stable profits for the owners. The real estate industry can also have catastrophic results when houses cannot be rented. People which own apartment buildings and houses will only earn a profit from rental rates which provide more income than their costs for mortgage payments. Owners may suffer foreclosure problems when they have vacant investment properties. There is a serious responsibility with choosing appropriate real estate investments just like the stock market options.