Sunday, January 4, 2009
Penny Stock vs Treasury Bond
September 15th, 2007
by degsnumber2
Why give nicknames? I get a certain sense of security that only a select few know about these two guys.
What are Penny Stocks? Penny Stocks (PS) are stocks that have value of less than a dollar. Penny Stocks are low cost, but high risk investments. You put in very little capital, but these are volatile stocks. They can plummet to zero value. But if you play your cards right, the company you’ve invested in grows and the value of the stocks rocket, you get big bucks. Again. LOW COST, HIGH RISK.
Treasury Bonds are fixed income securities. You invest a specific amount of money, receive interest on a regular basis. Get your capital after a specific period of time. You’re guaranteed a return of your investment. But there’s also a risk to investing in TBs. Inflation. What is the value of your $1000 right now? In 10 years how much would the same be worth?
What is your goal? You want to profit, right? Get the most out of what you’ve invested.
So I weigh things out. Do I want PS? Who does not guarantee anything in return? But presents a lot of potential.. Do
I want to risk losing everything over the slim possibility of hitting it big time?
On the other hand, do I want TB? TB who is consistent. Someone who is reliable. Someone who’s got my back for sure. Someone who is always my friend. I’m sure that he’ll always be there for me, I know that we will always have this connection. BUT do I wait? In 5, 10 years, will the investment I’ve put in have the same value?
Both have certain risks. So do I invest? Do I risk putting my heart on the line? Do I choose PS, minimal investment, high potential for reward? Do I choose TB, steady, but has tendency to decrease in value?
These questions are actually quite stupid. I don’t even know if PS or TB would ever look at me that way. But let’s just pretend that things do turn out the way I want it to. PS is fun and exciting. He has great potential. He has the qualities I look for in a guy. He has 6 out of 7Gs. TB… he’s nice and reliable. He’s a friend. He has 7 out of 7Gs. BUT he’s my friend.
Penny Stock or Treasury Bond?
# posted by plumgirl @ 12:50 PM 
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