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.
Section 1202: Small Business Stock Gain Exclusion
What is Section 1202 Stock? In December 2015, the Protecting Americans from Tax Hikes Act of 2015 (“PATH Act”) was passed by Congress and signed into law by President Barack Obama. The PATH Act made several tax breaks permanent, including the Small Business Stock Gains Exclusion (Section 1202). The new law makes permanent the exclusion…
Section 1202: Small Business Stock Gain Exclusion
Section 1202: Small Business Stock Gain Exclusion Updated: 01/16/2016 In December 2015, the Protecting Americans from Tax Hikes Act of 2015 (“PATH Act”) was passed by Congress and signed into law by President Barack Obama. The PATH Act made several tax breaks permanent, including the Small Business Stock Gains Exclusion (Section 1202). The new law…