I’m no longer a lawyer. I’m not a financial expert but I am a fan of the finance principles. For example, if you have an investment that pays out at a certain rate, you are not allowed to sell it at a lower rate. You have to keep your investment in the same place with the same rate. You can’t make any profits in the short-term, no matter how much you hope.
So when I think about finance, I think of buying shares in an investment company (like, say, a mutual fund). This is a common way to invest as you can put your money into a single share, and then earn interest on it. But you can also invest directly into an investment (like a stock) and then earn the return on that same stock in the same time-frame.
The risk, or potential loss of earning money, is always present in your investment plans, and it is the primary reason that I advocate the use of mutual funds. However, there is a risk involved in investing with funds, and that is you get less money back for the money you put in. This can make investing more risky than it is worth, unless of course you have a very liquid portfolio. So when I think about investment, I think of investing in a mutual fund.
I like to think of the financial world as being like a really large and expensive restaurant. You want to make sure you can cook worth a damn, but you want to make sure you don’t starve if you can’t pay for the food.
In finance, you make a very large investment (in your own time) that could end up going terribly wrong. I know I know, I’ve said this before, but it does kind of sound like the restaurant analogy. The restaurant is the investment, and the risk is the money that you lose (or make a profit on) when the investment is put into riskier investments (such as stocks). It’s actually pretty rare that you can lose money in your investment.
This is the same concept that is often mistaken for the restaurant analogy. If you invest $100 in a restaurant, it does not mean that you are going to get a $100 profit every time. You could end up making that profit just by letting your investment run down, but in finance, you need to have at least 1/10th of the restaurant so it could net you a profit.
So, let’s say you have 100 dollars in a bank. If you make a 100 investment in stocks, that means you get $100 profit. If you increase your investment by 10 dollars, that means you get 110 dollars profit. If you then take your 10 dollars, that means you make $110 profit. So, you’re not just increasing your investment by 10 dollars, you are making a profit.
In finance, the formula is the same, but in a slightly more complicated way. If you decide to invest in stocks, there is a certain risk associated with doing this. However, this risk can be mitigated by simply taking your money out of the bank and investing it elsewhere. If you invest your 100 dollars in stocks, you will only have 99 dollars to lose. If the stock market crashes at 100 dollars, the 100 dollars you would have lost is still worth 99 dollars.
If you don’t think you can make money investing your money in a stock, you’re wrong. And the reason is simple: you don’t understand what stocks are. A stock is simply a piece of paper with a letter on the back that says it is the shares of a company. Stocks are not real things. They can be purchased like any other piece of paper. The only difference is that when you buy stocks, you are buying a company.
Stocks are simply a piece of paper with a letter on the back that says it is the shares of a company. They are like a stock certificate. You can buy stocks without having to actually go to a stock broker. Stockbrokers buy stocks and sell them. The only difference is you are not buying a company. In fact, the only reason you are buying one is to then sell it when you are done.