CROWD FUNDING & THE STOCK MARKET
Crowdfunding has brought a new lease of life to both business start-ups, and also to collective investments. But do you know that crowdfunding has been in existence with the biggest stock market in the world?
The US stock market has been the most watched and talked about market in the world which epitomizes the financial world itself. But few have been able to draw conclusions between simple investments in the stock market versus the latest fad in crowdfunding.
Any listed company on the US stock market is practically practicing the same act of crowdfunding. Here are some similar characteristics.
HOW ARE THEY SIMILAR?
1. They seek funding via the stock market from a large pool of investors or traders in the company. 2. These transactions are also typically carried out via the Internet.
3. The better projects attract more funds from the lesser projects. They are able to attract with their business stability, and of course the ability to generate profits from its “participants” year after year!
In addition, it is interesting to note that the stock market allows you to join into some of the best and most lucrative projects in the world! With just one simple investment, you would be able to generate multiple sources of income.
With the simple use of stock options in the marketplace, any investor of the company are able to leverage on the existence of this financial product to double up on their earning capability on the original investment they have made in the company.
THE CALL OPTION
The call option is one of the two options available for investors to buy and sell in the stock market. This allows for the buyer of this option the right to buy the shares at a pre-determined price by a specific date.
This allows for a “gambler” in the markets to profit from the scenario of the stock price going up. There is a small premium payment to own the call option on the stock. Compare this to a hefty investment of capital to purchase and own the actual stock itself!
However, the real beauty of selling the call option is that the retail investor can continue to sell the product, so long as they are willing to take on the potential obligation of selling the stock at the pre-determined price within the specific date period, to the buyer of the call option.
COMBINING SELL CALL OPTIONS WITH STOCKS
Do you realize that you therefore able to generate extra income out of your investments at the same time? I also call this rental income – Just like how you would gain rent from the property market!
And with correctly executed strategies, they deliver well and over average results, and returns. We can combine the capability of selling call options, with the ownership of stocks of a particular company.
From this combination, we are able to reap capital gains from our investments when the stock goes up in value. We can also wait for the stock to make its move. You see, patience has its virtues in investing too!
Any investor armed with this skill set, will be able to function in the stock market like a cash-gushing business in operations. Instead of purely speculating on the stock they have chosen to invest into, they can now sit back, and ring the cash registers with what they own.
They will literally make money on their own terms!
If you desire to boost your investment returns up with 30% p.a. and higher with the same group of stocks, drop by one of our free investing sessions.
Discover how you can secure greater and safer investment returns in 2015!
Terence Tan is the Chief Investment Strategist of Giants Learning Technologies. He is the creator of the 1st and Only Income Investing Programme in Asia Pacific. He graduated from the University of Queensland in 2003 with a Bachelor of Commerce (Accounting & Finance) and was awarded the Deans Honors Roll.
Terence had accumulated vast Investment Management experience since graduating from university, and had since managed multiple accounts of funds averaging more than USD$500,000. During his tenure, he helped clients amass an average returns of 30% and higher. He has coached and trained DBS Bank in Singapore, and was appointed a lecturer in the Diploma in Wealth Management program with Entrepreneur Resource Centre in Singapore as well.
An elite sportsman, he is also a 6-times Sea Games Gold medallist in the victorious Singapore Waterpolo Team.
He has more than 10 years of trading experience in relation to stocks and 5 years with stock options, futures, commodities, and forex. There are few other trainers who are as well versed as he is, in terms of financial instruments trading knowledge.
If you want to know more about Our Income Mastery Programme and its benefits . . . email us now at email@example.com (Singapore)
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