Finance Line Wed, 12 Oct 2016 16:36:15 +0000 en-US hourly 1 Finance Line 32 32 5 Types of Investments You Should Look Into Wed, 12 Oct 2016 16:36:08 +0000 [Read more...]]]> Investing your money can help you grow your net worth faster than the rate of inflation. This means that you are creating real wealth that you can use to start a business, help a child go to college or otherwise secure your financial future. What are some specific types of investment that you may be interested in?

Invest in Stocks


One of the most common ways that people invest is to buy shares of stock. Each share of a company you buy represents an ownership stake in that business. As the value of the company goes up, the value of each share will increase. Some companies even provide dividends, which is a return of capital to investors that can either be kept in the bank or reinvested into more shares of that company’s stock.


Invest in Debt


When a company or government agency issues a bond, what they are doing is asking you to help finance their debt. The money raised may be used to pay for new roads or a new public school for the community. It may be used by companies to fund the acquisition of another business or to help it build a new factory or other types of infrastructure. Bond payments are generally made over a period of many years and decades, and United States government bonds are seen as among the safest in the world.


Invest in the Future Price of a Currency or Commodity


Forex trading involves buying and selling currency in the hopes that it will increase in value while you own it. Conversely, you may be try to sell currency and hope to buy it back at a lower price to benefit from a downturn in a given currency. Gold or oil futures allow you to make money by speculating on the future prices of those commodities. Depending on where you trade, you could make hundreds or thousands of dollars in a single day. However, this type of investing may also involve more risk than buying stocks or bonds.


Invest Directly In a Startup Company


If you are interested in starting your own business or know someone who needs financing for their own idea, you may want to consider investing in a startup or small business. While there is the risk that the company could fail, investing at the very beginning could make increase the odds of seeing a large return. In some cases, you may be able to secure your investment with an equity ownership stake in the company or by placing a lien on its assets.


Hard Money Loans Can Generate Large Returns


Those who are interested in large returns with lower risk may want to become a hard money lender. Hard money loans are generally secured with a lien on the home and are further guaranteed by the fact that the loan terms are relatively short. Therefore, you may be able to get your money back in as little as month or less.


While it is nice to have cash in the bank, it could be doing more for you in the stock market or by helping other people make large purchases. If you are ready to start investing, it may be worthwhile to talk with a financial adviser who can help you establish a portfolio.

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5 Facts To Know About Stock Buyouts Thu, 15 Sep 2016 22:27:41 +0000 [Read more...]]]> What are buyouts?

It is the buying of a company’s share by another party that ends up taking control of the firm in question. The buyer benefits because they ride on the market and goodwill already created. It gains from the already established market, name, and structures.


Buyouts if handled well can be music to the ears of the shareholders. The price that the buyer quotes is usually premium to justify its sale. It is higher than the actual value of the stock. In the run up to closing the deal, the stock price will inch closer to the quoted price.


Entry of a new competitor to the negotiation table during the buyout changes the scenario. The new dealer will offer a better price than the one previously quoted tipping the playing field for the seller. The new high price pushes the prices further up making the stock very profitable to the shareholder.


When handling buyouts, it is important to understand some basic facts such as:-


Buyouts can happen even to robust and stable companies


The notion that buyout only happens to weak companies is a myth. The truth is that even reliable companies get approached for acquisitions. Large firms that are seeking to dominate a certain market may decide to take up the other smaller but well-performing businesses to improve their portfolio and to strengthen their base.


Stock buyouts take a long time to complete


There is no exact estimated time for a buyout completion because there is a lot of back and forth communication between the buyers and the sellers. It gets even more complicated when it emerges that there are more interested parties. If competition comes in and places a better bid, then the process could take more time.


Tax implications


Sold stocks are considered as capital gains and as such, attract taxation. The percentage of tax depends on the duration of time that you have held on to this stocks. The shorter the term, the higher the tax. The rate reduces significantly when the stocks have aged in your hands. Therefore, it is wise to think long-term.


Filing and proper book keeping are vital


It is essential for the company being bought to have its documentation right. The buyers will be keen to know the actual position of the enterprise regarding loss or profit making, hence estimating its real value. Filing and correct bookkeeping will assist the shareholders to determine the net worth of the assets. Missing gaps in the records could negatively impact on the value.


The buyer can choose to maintain the identity of the buyout


The reasons that the buying company might want to hold on to the identity of the buyout are varied. Business and brand continuity could be one of them. Loyal customers who are accustomed to a certain brand will find it hard to change to a new name even if the product or service quality is the same. The transition of ownership with the old identity is easier with other stakeholders such as the suppliers and employees.


Stock buyouts is an exciting phase of business. It offers opportunities and challenges in equal measure. Both parties need to be careful to ensure they get value for money and stocks. It is wise to employ an experienced hand when undertaking a stock buyout.

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The Best Sites for Investors Mon, 27 Jun 2016 21:19:33 +0000 [Read more...]]]> real-estate-investment

When it comes to actually looking into investments, there are three types of people. There are individuals who are too nonchalant that they don’t care and don’t know investments. There are the type of people who try to get the minimum done then hope that their investments will be enough someday. Then, finally, there are the types of people who are actively and constantly looking to do whatever they can in order to pour more money into their investments so that they may be able to retire early. When you are looking to invest as much as possible, it just depends on what route you want to go. However, pay attention to the following so you know what to do next.


Understanding the Markets

When you consider all of the possibilities for news sources and media outlets these days, there are countless forms of information. However, you have to continue seeking out the best possible sources of news because with the transparency of the world and the rapid changes in the markets, if you don’t jump on a story right when you hear it then you may not be able to actually capitalize on any information. Or, if you move too slowly, then you could find yourself stuck in a bad position because everyone else moved while you were stuck in park. The traditional source to look into for major news these days is still The Wall Street Journal, but when you consider the options there are many substitutes out there depending upon your niche.


Non-Traditional Investments

While it may be more about a certain lifestyle than just having pure investment advice, by tapping into some of the more frugal living and way of life websites you can start to question what it is that is truly important to you. By looking into a few websites such as Early Retirement Extreme, and Mr. Money Mustache, there is a bit of vulgarity sprinkled throughout as a warning, but there is also nitty-gritty financial advice that is drilled down to the absolute detail. Not only can you find out how you could be wasting money without even knowing it, but you can also learn how to invest in yourself by minimizing bad decisions and putting money where it really counts.


Real Estate

While it may seem like a slightly different type of investment, the idea of real estate can always make you some sort of money regardless of where you are or what period of time you are in. Whether you want to buy and flip, own rentals, or even do repairs for the long haul, there are more than enough resources which can truly tell you how to run your real estate investing business. Just make sure you pay attention to all of the news and feed from every resource including, Zillow, Trulia, and etc.


At the end of the day, there are multiple ways to invest. You can’t just expect to know there is a sure thing out there because if you did someone else would already be capitalizing on it. However, when it comes to some of the most powerful types of investments currently out there, you should pay attention to the markets, the local economy, housing trends, and even your own behaviors to get ahead.

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