Question

assume you have extra money to invest how they would prefer to invest the money. would you consider loaning money to a corporation or would you rather buy shares of stock in the company? why did you make the decision to lend or buy?

Answer 1

If I will be having extra money to invest I will be preferring to invest the money into buying the shares of the company because buying the shares into the company is better option as-

A. It will be offering with the high flexibility of getting entry and getting exit at any point of time

B. There will be e purchase of this year according to my need and I can deploy my money whenever I want and it will also offer me with the chance of capital appreciation

C. It will also help me to gain through dividend payments by the company

D. it will provide me with high liquidity and I can dissolve my stake whenever I want and there will be other options available

E. it would be leading to getting not influenced by companies director and management and investing in the company is based upon the fundamentals.

Hence I will be preferring to buy the shares of the company.