The Power of Investing
SNAP Inc. (SNAP), the creators of Snapchat have hit it big with their IPO (initial public offering). They went public with their company and have made billions of dollars in a single day. From turning down a buyout from Facebook for $3billion cash to now being worth 10x’s that, and growing.
It was an instant success from the gates. The IPO was listed at $17/share. Currently as I write this, it is soaring up past $27/share. That is almost a 60% increase in share value. So for those that invested, they are reaping a solid 60% return, given they sell now. But should they? The number keep’s climbing but could drop at any given point. That is the stock market my friends, but given accurate timing and the ability to read into a stock, this was a solid investment for those that decided to pull the trigger.
Let’s put it into perspective.
$1,000 invested got you around 58 shares of SNAP (@$17/share). If you sold it now, you would be walking away with $1,588. That is $588 in earnings (before trading expenses and taxes) for a day’s work.
Now let’s think bigger.
$5,000 = $7,941
$10,000 = $15,882
You could have made $5,882 in a day’s span, simply by putting up $10,000 on a solid stock. That’s a great day’s earning. Now you can see why those 1% on Wall Street get richer every day. They are doing this.
Be Smart Though
Now don’t get me wrong, this could have gone the other way and you could have lost $5,000. That is the stock market, but the more you are prepared, just like everything else in life, you lower that risk factor. Now if you knew how to read an IPO like this, you are reaping the benefits. If only we did it right? If only we took out a quick loan of $50,000 and paid it back the next day. We would have made almost $30,000!!!!
So until the next one, keep preparing and learning as much as you can.
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