Are There Any Disadvantages of Buy Shares Instead of Starting One's Business?

[frederick_9]

There are numerous drawbacks to purchasing shares since you cannot predict when the share price will rise or fall. As a result, you are exposed to price swings, which causes many people to be wary of engaging in such firms.

 

[Imran_Noori]

Lately, my brother has been considering starting up a small scale business related to rendering computer services and cyber cafe. It will cost him around $300 to do this. But there's an ongoing shares that he is willing to buy at this same price. He can only invest in one due to lack of funds.

He asked if there is any disadvantages of buying shares in a company instead of starting a business with the same money. What advise do you have for him in this condition.

It depends on the situation, for a complete beginner it would be difficult to manage a business but investment in stocks and shares would be a good idea because you won't need any management or experience alot.

 

[tyrim88]

One of the disadvantages of buying shares is that it may lose its value over time. the business you are investing in a file for bankruptcy or go out of business.

I think even the business you are into,one day you might decide to list it on the stock exchange to source for funds to pursue the prospect of the organisation,i think it al boils down to the way the firm is being managed.