Examples Of Passive Income Opportunities

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Opportunities come in many forms. Some say that opportunity knocks only once. Others say it just lingers. Whichever is true is not a big deal. It is how one gets the opportunity. Most people would agree that an income opportunity is the best opportunity they could have. This is the reason why everybody looks for it. Still, some could hardly find it. To really get the opportunity does not necessarily entail much energy. One good analogy is the lion. Lions get their prey after ten attempts. By the time they eat their victims, they will have used all their energy. So, their meal is just enough to replace their lost energy and that energy is also just enough for another day to get another prey. On the contrary, crocodiles just float on the water…show more content…
If you are investing in stock market, the right opportunity is when the value of a company that you are willing to buy is at the bottom. In this case, it is cheap and the potential for stock valuation is high. So, this is another passive income opportunity. In stock market, we earn from the dividends of a company and at the same time from its valuation. Taking advantage of the price fluctuation offers a lot of passive income opportunities. Ideally, we buy shares when they are cheap and we sell them when they are expensive. This is also true with almost all trading instruments. A passive income opportunity is evident when a clear and strong trend has been forming. To get the right entry, we must understand why such fluctuations occur so that we can follow where the market is heading. It is important to know the price action of a given instrument to measure the potential and the limit of a passive income opportunity and this is determined by the changing dynamics of the market driven by many different factors that we must also get into…show more content…
Companies do not have to borrow money from banks to expand their operation. Instead, they will look for investors to put up their funds in order to fund the expansion operation. This fresh issue has not yet been traded in the stock market. When a company conducts its IPO, the fresh issue of shares is bought by investment banks. Investment banks will pay the company afterward. Then, the fresh issue which the investment bank has bought will be sold in the trading floor of the stock exchange. This kind of sale in the trading floor is known as IPO. Why many traders desire to buy an IPO is because most companies that issue IPO are in expansion mode. Obviously, a company expands when it has been growing, and the potential growth in the near term is high. In addition, an IPO of a growing company is offered at the bottom price. Therefore, the price direction is set to a bullish trend. After the initial public offering, these shares will be traded. And when these shares are transferred from one trader to another, these shares will become secondary stocks. IPO is one good example of passive income opportunity. In the stock market, rumors about an IPO stimulate risk appetite. During economic slowdown, IPO is hardly heard unless the industry it belongs to is resilient. So, a passive income opportunity begins when the economy has continuously been growing especially if the main recipient is the company
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