+- Business, Investment, & Insurance Forum (https://investmentforums.net)
+-- Forum: Investment Forums (https://investmentforums.net/forumdisplay.php?fid=4)
+--- Forum: Investment 101 (https://investmentforums.net/forumdisplay.php?fid=32)
+--- Thread: Investing Through Other People's Money (/showthread.php?tid=618)
Investing Through Other People's Money - InvestmentGuru - 12-30-2023
"Other People's Money" is a cool term in business. It's not just businesses; even the government gets rich with other people's money, like taxes from businesses and individuals.
Most big businesses are public limited companies. That means they sold their stocks to the public. People like you and me buy these stocks, giving the companies money to grow. The companies use this money to make more products or offer services, make a bunch of profit, and become even bigger. But here's the thing: they only share a small part of that profit with the people who invested in them.
Before they started using other people's money, these companies used the founders' money to create something lots of people would like. They worked hard and spent a lot of time and money to make their business successful.
So, when you invest in these companies, you're kinda like a part-owner, and they share some of their profits with you. It's a win-win – they get money to grow, and you get a piece of the profit pie!
RE: Investing Through Other People's Money - Jolly - 05-27-2024
Investing through other people's money (OPM) involves leveraging borrowed funds to increase potential returns. Real estate investors often use bank loans to purchase properties, aiming to profit from rental income and appreciation. Similarly, venture capitalists use pooled funds from investors to finance startups, sharing profits. An example is buying a rental property with a mortgage, using tenant payments to cover loan costs and generate profit.
RE: Investing Through Other People's Money - Heatman - 05-30-2024
This is as simple as buying stocks and shares of companies and hope to get your own return of investment of the stocks that you have bought after the company have reviewed their profit making for the year and pay those who bought their companies shares.
It is a very good way for you to invest the money that you don't have any need for and see it making more money for you.