Reliance Money With Good Investment Opportunities
Written by Deepak Rao on June 27, 2010 – 2:48 amHaving tried to take some business risks cost you an arm and a leg, but if you had given it a second thought you would have committed your money to a savings account earning a 1, 2 or 3 annual percent during that time period
Is committing money to earn a financial return the same as playing for money? It must have crossed your mind if you had committed some money every month to acquire shares of any major company during four or five years previous to filing its bankruptcy. By becoming an owner, you could suffer the risk of your company not being successful. The rewards of this risk are high. You, as an equity shareholder, are entitled to a share in the profits of the company’s business as well as any appreciation in the perceived value of the shares.
When investing your money in a debt investment such as a bank deposit, bonds etc you are assured a fixed amount of interest on your investment and return of capital. This isn’t the case with an equity investment. BSE reflects the movement of the share prices on the stock markets. The Sensex rises and/or falls continuously during trading hours. Rises indicate gains and falls indicate losses.
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