Buy More Black Challenge: Day 20
Week 3: Leverage Your Buying Power
This Week’s Goal: Learn how to progress from loyal fan to an influencer for Black owned Brands.
Day 20: Purchase Stock, Shares and Bonds
Today’s Task: Purchase Stock, Shares and Bonds
As we near the end of our #BuyMoreBlack Challenge. I want you to ask yourself which of the black-owned businesses stood out the most to you and why. Now ask yourself how much you are willing to give to see that business be successful?
If you believe in the growth and expansion of a particular brand, you should definitely look into doing one of the following three things.
Stockholders do not own corporations; they own shares issued by corporations. This affords them various privileges like vote in shareholder meetings and receive part of the company’s profits if and when they are earned. It also gives you the right to sell your shares to somebody else. Stocks give you power within a company as a shareholder. This is a high risk investment because most companies don’t payout dividends to stockholders. That money is usually re-invested into the business.
Bondholders on the other hand serve as creditors to companies and have priority in the ranking of profit collections. Bondholders act as lenders to companies and can also charge interest on borrowed money. The debt owed to the bondholder is called a bond. Should the company fold, bondholders are the first to have their repayment processed. Bondholders have legal priority to profits should the company go bankrupt.
Both of these options are a risk, but investing and entrepreneurship is based in taking risks… The higher the risk, the greater the reward!
If you’re new to investing and want to know more, go to https://www.investopedia.com