By Stacey Ralph Parker David
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Extra resources for Chaos, Management & Economics: The Implications of Non-Linear Thinking
Your goal is to buy low and sell high. Your profit is the difference between the price at which you bought the stock and your selling price. On the other hand, if you hope that a stock will go down in price, you are said to be “short” the stock. When you short a stock, you first sell the stock, hoping to buy it back at a lower price. Your profit is the difference between the price at which you sold the stock and the price at which you bought it back. If you’ve never shorted stocks, it sounds strange until you do it a few times.
If for some reason you fall behind with your payments, the bank can attempt to take over your home. Also, when you own a home, you have to pay property taxes, homeowner’s insurance, and interest on the loan. Even with these drawbacks, owning a home is a worthy financial goal, although it’s not for everyone. (For example, renting is simpler and more convenient for some people. ) Many people use real estate as an investment. This includes buying a residential property, such as a single-family home, condominium, or townhouse.