Mark Hauser Profiles Different Types of Investments
Professionals who have taken the time to learn investments find multiple investment options. For beginners, a potentially intimidating industry might result in procrastination of such an important task. News reports often confuse listeners about what is happening and require objective information that could lead to a greater understanding of the topic. With standard investment options in mind, Mark Hauser provides a snapshot of five strategies that work well. He emphasizes that working with a credentialed financial advisor is the best way to reach targeted goals.
“Stock ownership” is the process of an investor buying and selling their shares in a publicly-traded company. Essentially, this process grants you a certain percentage of ownership for every share, and they can exchange their own as they please. Shares are also known as stocks and are the company’s assets. The firm sells shares to generate profits. For example, Apple, General Motors, and Facebook each sell shares during public stock markets. The decision to sell a stock for profit is often made when the stock price has increased, and other factors include paying dividends on your shares. The term “dividend” refers to the distribution of earnings by a company to shareholders, usually current shareholders.
A stock can also lose value and hurt investors who purchased it at a higher price. Mark Hauser believes bankruptcy is possible if the company experiences a steep price drop or an extended loss period. Shareholders have legal claims to collect from assets if the company goes bankrupt. Bonds are a highly used financial investment that’s a debt instrument. They’re issued by the United States government, local governments, and others.
Corporations often finance company operations by issuing bonds. Bonds can facilitate major purchases or fundraising tasks. Mark Hauser Investors who purchase a bond allow the borrower to use their money. During the bond’s term, the investor receives regular interest payments. When the bond matures, the investor gets back their principal. Interest rates influence each other. Bonds are valued higher when interest rates increase because bonds are more frequently traded at this time.