Small Business Stocks Can Lead to Big Gains
What’s your investment strategy? There is no end to the number of different strategies that investors have, and there are plenty of different successful ways to invest in the stock market. Likewise, Wall Street is full of stories of investors that have ended up on the side of the road, kicked to the curb after their investments went wrong.
A lot of people like to invest in large, well-known companies that have a strong track record on Wall Street. These companies provide some security in investing, especially if you’re in it over the long haul. Companies, like Apple, Nike, Disney and Amazon might be very expensive, but investors will usually end up on the positive side of the market. However, those who invest in big name companies and choose to ignore the small companies could be missing out on some great returns.
It’s true that investing in small companies is a risk and it’s not for everyone, but the long-term gains can be substantial, especially when you hit one of those small companies that unexpectedly turn big. Additionally, investing in small companies might not be as risky at one might think. According to a survey from Hiscox USA, nearly three-fourths, 72 percent, of all small businesses questioned in the survey reported growth in revenue over the last year.
So, while the gains might not be as high as they are with many larger, more established companies, chances are most of your small business investments will give you a good return. Thus small businesses do represent a solid opportunity that most investors should not be overlooking.
Capital Gains: Determining Your Tax Basis
Capital Gains: Determining Your Tax Basis The two chief forms of income for most people are “earned” and “unearned” income. Earned income (generally, your compensation for work that you do) is taxed at rates beginning at 10% and rising to 38.6% (in 2003). Capital gain, the income earned from your investments, receives preferential treatment. The…
Making the Most of Home Equity: Tips for Senior Citizens
Making the most of home equity For senior citizens living on fixed incomes, the need to replace a car or do substantial home repairs can disrupt finances. Major unplanned expenses caused by illness or disability can lead to financial disaster. Fortunately, many senior citizens are sitting on a major financial asset: the equity in their…
Keeping Your Health Insurance Premiums Low
Keeping Your Health Insurance Premiums Low Health Savings Accounts (HSAs) offer tax deductions for medical expenses, and the opportunity to set up an additional retirement account. But regardless of any other positive benefit of HSAs, lower premiums are the primary reason that thousands of Americans have chosen Health Savings Accounts as the best way to…
Identity Theft: Has your name been stolen?
Identity Theft: Has your name been stolen? Identity theft—the unauthorized use of an individual’s name or personal information to obtain money or credit—is the fastest-growing white-collar crime. Most probably, more than 700,000 Americans will be victims of it this year, with costs to them averaging over $800 and 175 hours of time spent trying to…