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

[Solutionav]

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.

Buying of shares is a good idea depending on the company track record and and how soon you can start making profit, but I think starting up your own business is more advisable

 

[Hojo]

I would advice him to start up a business and use his profit and invest and grow his business widely instead of risking it on volatile

 

[justija]

Starting up a business is a good idea than investing in stock or any other cryptocurrency investment, you can start up your business and see how it's moving

 

[Good-Person]

I am sure that the biggest disadvantage of investing in shares is the fact that price of shares can fluctuate at any time and this may lead to a big loss. This is also one of the reasons why I do not invest in shares.

 

[justija]

I will start a small or pretty business and invest with my profit to grow my business instead of taking the whole capital into investing

 

[Kaffyfolla]

If there is no time for you to monitor your business yourself and think if you employ someone, they might be cheating you by giving you little out of the profit generated then it will be advisable to by share in three company

 

[kayode10]

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.

 

[HayKay]

I think the wise thing to do is to do a feasibility study of both ventures - the pros and cons of each should be weighed and then he can decide which of them he wants to invest in. Though I'll say he invests in shares first, get returns and use the returns to keep investing

 

[Senator]

There is no much disadvantage in buying shares than starting a business. Just like in any business investment, the shares you buy might or might not end up in your favour.

 

[tyrim88]

Dividend entitlement, capital gains, limited liability, ownership, claim over profits and assets, right shares, incentive shares, liquidity etc. are the advantages of equity share investment. The drawbacks are dividend volatility, high risk, stock price instability, restricted control and residual claims.

As good as these seems as an equity share investor,your share will altimately determine your returns and dividence.And the share you can get are always limited,this is different from what you get when you are running your own outfit.Yuo have full control of the business.

 

[Immilash]

I don't recommend having shares on a company or organisation. I rather run my personal business than to have a share in another company.

 

[Alexandoy]

There are pros and cons between owning a share or using the money for a start up. For me, buying reliable shares of blue chip stocks is a safe investment that is free from stress. A business that I will manage can give me excessive stress that can even make me sick.

 

[greenie]

Buying of shares in an already established firm with a good track record and finacial management skill, is not a bad idea.But buying of shares with that amount of money and expecting a huge and reasonale returns based on what you have put in,might not be that much.As the major stake holders will just release small amount of shares for the public.
But in your investment,you determine how far you want to grow to.And that money, if properly utilise can give you a quick turnover in little time

 

[btaliat]

If the company thay he wants to buy its share has a good reputation, it is always good to buy share than to start up business. When you start up a business, you won't be that sure whether it will be successful or not but when you buy a share, you are sure of collecting your dividend.

 

[Alexandoy]

If the company thay he wants to buy its share has a good reputation, it is always good to buy share than to start up business. When you start up a business, you won't be that sure whether it will be successful or not but when you buy a share, you are sure of collecting your dividend.

You may be referring to blue chip stock which is owned by a big company that has been in the stock market for years. I own such stocks by the biggest bank here. The market price is stable and profit is really slow. However, there is a minimal dividend given to owners every year.

 

[Good-Person]

Yes, there are certainly many disadvantages of buying shares instead of starting your own business. The stock market has the potential to drop any time and you would need to set a "Stop loss" limit and wait for the prices to surge once again. However, there are many advantages associated with stock trading as well. You may make money when the prices of your shares skyrocket without getting directly involved in the business.

 

[YERUS]

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.

If he does not know much about stocks and shares, it is advisable to use the money to startup a business.
As risky as investing in shares can be, any other business is likewise.
He will have to weigh the balances very well.

 

[Toyoabasi]

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.

Of course every business has its own risks and disadvantages. Your brother should be sure of what he really wants. It is possible to lose all that money in stocks, it is also possible to earn big. The choice is really his to make.

 

[tyrim88]

Wel in this category,it is just left with him to decide on what he really wants to do and love,because it is from the passion that he will be able to grow the outfit or continue to put on investment very well.

 

[Genie01]

Starting up a business is very nice especially if you would passionately resolve not to give up at the developmental stage of it.
It would be better than investing in a thing you have zero control over.