Read? Saving, Lending and Investing (2)
One simple rule to remember. How are we paid?
When we save - we are paid low interest rate.
When we lend (buying bonds or pref shares), we are paid coupon rate (interests)
When we invest in stocks- we are paid dividends and we also speculate for capital gains.
When we invest in property - we are paid rentals and we also speculate for capital gains.
Interests, coupons, dividends, and rentals are basically yield on investment cost;...
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