Archive for the ‘Investment’ Category

10.12
13

Richard Meyer Cayne – Offshore Investment Consulting In Japan

by como ·

The landscape for getting investment advice in Japan has changed over the past few years says Richard Cayne at Meyer Asset Management Ltd. Its unfortunate but residents of Japan while they themselves are free to invest anywhere in the world without restriction cant get reliable information these days.

Just a few years ago investment advisors in Japan were able to give advice and help their clients by showing and intermediating hundreds of overseas investment choices but now that the regulatory regime has changed, this is no longer legally possible. Now says Richard Cayne at Meyer Asset Management Ltd investment advisors in Japan are limited as to what activities they can perform under the license they hold. Under the Financial Instruments and Exchange law (FIEL) an investment advisory firm licensed is only allowed to give general advice to clients and only charge clients for this advice. There is no provision to allow for selling, intermediating or introducing their clients to overseas funds which are not registered in Japan with the regulators there. In fact just an introduction whereby they receive a fee is seen now to be a form of solicitation by the regulators helping in the sales process and is no longer permitted by law.

The ultimate looser in this is the Japan client wanting to diversify his/her holdings abroad. There are still some intermediaries in Japan who market themselves as licensed and able to give financial advice which is misleading to clients given the above laws do not permit the said advisory firm to introduce specific securities to residents in Japan regardless of nationality. Richard Cayne of Meyer has assisted the regulators in Japan in defining what the offshore investment market entails and also to inform overseas fund companies that they themselves need to be cautious about dealing with investment advisory firms in Japan and to register their products with the regulators should they want to market their products via Japanese based entities to residents of Japan. Clearly the FSA in Japan wants to have more control over companies that wish to market their products in Japan.

Unfortunately the FSA has set new conditions and companies like UBS, Credit Suisse, and a long list of private banks and investment firms previously offering offshore funds to residents of Japan have shut their offices in Japan and simply assisting Japan clients from abroad while being careful not to solicit clients in Japan. This is the only way forward and means that residents of Japan if they want to invest abroad can do so but must be the ones interested reaching out to the overseas financial firms.

The good news for internationally minded investors resident of Japan is that they are free to invest wherever they like without restrictions unlike many other countries in Asia where residents are not free to do so. Therefore Richard Meyer Cayne recommends that any serious investor should look to the advantages that offshore investments hold for them.

Richard Cayne had lived in Tokyo Japan for over 15 years and currently resides in Bangkok Thailand. He is Managing Director of the Meyer Group of companies which is part of Asia Wealth Group Holdings Ltd a London UK stock market listed financial services holding company.

09.5
13

The Role Of Your Investment Attitude

by como ·

Many people often wonder why some make it in the stock market and some don’t. They sometimes sigh and say, “They have all the luck, that’s why.” True enough, luck can be a factor in one’s success or failure in the stock market. As most experts will allow, trading at the stock market is very similar to gambling. They both involve a great deal of risk. But unlike gambling, success or failure in the stock market is not solely dependent on luck. It has much to do with two things information and attitude.

Information has much to do with success or failure at the stock market. First of all, information makes stock trading more than just guesswork. Analyzing trends can help investors make educated guesses regarding their investments.

One important aspect that often goes unnoticed is the proper attitude investors must have towards investing. Too often, investors fall prey to the wrong type of attitude in investing. This leads to wrong decisions, and impulsive buying or selling. What are these attitudes, and how should they be avoided?

1. Many Investors Exhibit an Impatient Manner
Unfortunately, many investors get into the mix just because they are under the impression that they could get rich overnight as result of a few investments. This is so far from the truth. In fact, successful portfolios are built over time. Stocks take time to mature and appreciate. If the investor never realizes this, he or she might be looking to make a quick buck. And when he or she is unable to, he or she may become discouraged or may sell his or her shares for a lower price.

2. Many Investors Look to Take the Risk to Be Overnight Millionaires
Warren Buffet, the Wall Street Tycoon has this advice for investors: don’t bet all your marbles on stocks that seem to be skyrocketing today. They could crash tomorrow. Buffet confides that he has always built his empire over stocks that were stable and exhibited continued growth over the years. He says that these stocks are preferable to volatile stocks that could crash anytime.

Other investors fail to diversify their portfolios. Depending on how much risk one is willing to take, an investor should divide his or her portfolio into low-risk, medium-risk, and high-risk categories, and invest in such stocks. Some people are too risky and put their heads on the guillotine with high risk investments. Others will not risk their necks on any investments. One should choose an attitude that is just right for his or her risk tolerance.

08.24
13

Make Money Online With Small Investment…but Big Return

by como ·

I think one of the least talked about ways of making money online has to be promoting on the street. The reason is because as soon as the Internet became popular it was literally kicked to the curb! Originally, everyone was making money on the streets, either by handing out flyers, or placing lawn signs everywhere. If I were to tell you that you could still make money by doing this, youd probably call me nuts! Well, if you really want to think that, go ahead because I think this needs to be talked about.

If you want to make a lot of money extremely quickly, do this, I promise it works! What I want you to do first is go to a website called ClickBank and sign up (its free). What they do is manage a bunch of different products that you can promote for a commission. All you need to do is send traffic (people) to that product page, and if they buy, you make your commission. The correct term for it is, becoming an affiliate. Now the good part

Once youve done that, the promoting on the streets comes into place. After you pick a product that you want to promote on ClickBank, I want you to open up Microsoft Word, Notepad, whatever you use on the computer to write things. You will need to write 2 sentences about the product you are promoting, and make it catchy! Make the font extremely big and bold so that people can read it from far away. Then place your custom link to the product you are promoting at the bottom of it. (Its called your Hoplink and ClickBank creates it for you, its extremely easy.) Now after you have done that, I want you to print out about 100 of these. Fold them in half and take them with you on a walk around your neighbor hood. When youre walking, place them on the windshields of parked cars After youve run out, go home and log into you ClickBank account later that night. I guarantee youll be surprised!

This is exactly how I started affiliate marketing. I know youre probably thinking that this would never work and that its a waste of time. Well let me tell you something. When I used to do this, for every 100 I would hand out, Id get around 10 people buying. So lets say that I received $50 a sale. I would make $500 dollars every time Id go out and do this! Sounds a little more appealing now, right?

So go out and do this, I promise you if you just try it, youll start seeing great results immediately. If you want more tips like this about affiliate marketing, I highly suggest you join my free 7-day Bootcamp where I explain exactly how to make money with affiliate marketing, from scratch! And its free, whats better than that?

Check it out here: http://smonae22.tycsh001.hop.clickbank.net

08.11
13

Benefits Of Trading In Nifty Option

by como ·

Everyone wants to high profit in stock market. In order to do that, they have to acquire knowledge about different options. If you are a medium or small capital investor then you can do more beneficial Nifty options trading. For this you have to acquire crystal clear conception about Nifty options. However, Nifty option is nothing but a product which can make you maximum profit. As for example, you will able to earn Rs. 5,000/- by investing only 10000/- in a single trade. This investment also carries risk but that is very low in amount. Rs10, 000/- investment carries highest risk of Rs 25, 00/- or less depending on your stop-loss trigger stage.
Option trading has more benefit because it needs 1/10th of usual or traditional stock trading investment. If you do Nifty option trading then you will able to earn more profit at the time of down market. The table drown bellow will give you an idea about the actual benefit if option trading.

Instruments
Investment
Risk
Reward (IntrDay)

Stocks ( 5% stop loss)
Rs.1,00,000
Rs.5,000
Rs.5,000 (5% Profit Margin)

Options (25% stop loss)
Rs.10,000
Rs.2,500
Rs.5,000(50%Profit Margin)

You can see a grate amount of money will remain in your hand. In this example Rs.90, 000/- will remain in stay in hand. You can put to other forms of asset or keep it securely. As you can earn same profit by investing little fraction of your capital, you need not to invest big amount.

To acquire perfect knowledge you can take help of internet for Nifty option training. You will find different site which will provide you training for Nifty option. Probably you always get some tips and or signals from marketers. You will have to careful about it because the tips and signals are quite false given by those people who influence the market for their own purpose.

It will be very dangerous for anyone if he start Nifty option trading without proper guidance and perfect knowledge. So, before starting it you should take a proper guidance.
If you take training from an association then they will teach you the fundamental and technical pointers of entering into a Nifty option trade.

They will offer real time Nifty option trading simulations. Make you ready to take a Nifty Options Trade as soon as you terminate the course. Nifty option is not a daily trade. It requires exact time & value to buy & sell to enter into a beneficial Nifty Options trade with the least risk.

07.30
13

Signed Football Shirts For Soccer Fans As An Investment

by como ·

Perhaps you may have noticed recently that the stock market has crashed. Sure it’s sad for the people who invested so heavily in it but perhaps behind it all there are a few expensive lessons to be learned. The first lesson is that the stock market is a great place to invest your money when its hot but should it turn cold, the stock market giveth and the stock market taketh away.

Truly Beautiful Investments to Hold in Your hand

Whats really crazy is the stories that are coming out on the news about people who are committing suicide because they have lost their millions. Is that really what investing is all about or can there be more to life than that? What about investments that you can hold in your hand and truly appreciate whether they go up or down in value.

Always Valuable to Soccer Fans

This is where the signed football shirt truly shines as an investment opportunity for todays soccer fan. A truly special football shirt that a favorite soccer star has actually held in his hand and put his name on. Of course these types of signed football shirts can be bought on a speculative basis but can they ever completely lose their value in the way that so many other investment commodities have recently?

Not Worth Dying Over

Of course not! And that is what makes them such an excellent investment. Do you think those guys would have killed themselves if they were loyal soccer fans that had invested their millions in signed soccer shirts? Hell no! Because for one thing they can never lose their value the way that stocks have and besides, regardless of which way they go in value, they will always be a genuine signed soccer shirt!

Well Worth the Sacrifice

OK. So now you are ready to sell your home and move into a cardboard box, so you can invest your entire net worth in signed soccer shirts and live under a bridge. Thats a wise choice, because for one thing it shows that as a true soccer fan you really do have your priorities in order. The wife and kids can go and move in with her mother. She’ll understand.

Using Prayer as an Investment Tool?!?

However before you begin making your purchases there are a few things that you will need to know. Of course the golden rule about not making emotional investments goes right out the window here, because after all, it is soccer your dealing with. However; with any type of sports memorabilia the idea if you plan on making money is to pick a rising star in his rookie year and pray like hell he doesn’t get injured.

Don’t Get Scammed

However; there is one other golden rule that you will definitely want to invest in signed soccer shirts by. That is that you should only buy a signed soccer shirt from a reputable website. Scouting around the Internet for screaming deals, more often not is only going to leave you holding a counterfeit. For investment purposes, the only option that you should consider is signed football shirts from credible online sources that come with a certificate of authenticity.

07.5
13

Ubud, Bali, Property Investment Five Great Reasons Why Ubud Real Estate Will Grow In Value

by como ·

Bali is one of the worlds’ most sought after tourist destinations. Its unique ancient Hindu culture is rich with elaborate religious ceremonies and processions that occur almost daily.

Five Great Reasons for Property Investment in Ubud:

1. Ubud is the art and dance cultural center of Bali. Located in the center of the island-state, this small village is one of Bali’s three primary tourist areas. Ubud thrives on a steady, dynamic level of tourism that stimulates a fast growing real estate business climate for both commercial and residential properties. Bali’s stable provincial government is democratically elected and encourages an open and welcoming business climate since economic growth adds greater tax revenues that permit new and ongoing development projects. The government’s ever increasing investment in infrastructure stimulates even more foreign investment and the implementation of new business standards and regulations underpin long term economic success strategies that point to sustained growth in coming decades. Even during the recent global economic crisis, Indonesia maintained approximately a 6% growth rate. This burgeoning economic giant in the region was little influenced by the downtrend, primarily because the Indonesian financial system doesn’t function as a credit-based economy. Most foreign investment in real estate is on a cash basis. Today property values maintain a steadily increasing growth curve and the investment value of property in Ubud continues to augment because of the town’s popularity amongst tourists and locals alike.

2. Ubud, a quaint little village of only 8000 people, is a magical place. In 2009 it was rated “Best City in Asia” by readers of the US-based luxury magazine Conde Nast Traveler. Ubud dethroned Bangkok as the best Asian city. Bangkok had held the top spot since the category debuted in 2004. Ubud also beat out several other key travel destinations–Hong Kong, Shanghai and even Tokyo–all major contenders for the prestigious award. Ubud’s validation by Conde Nast Traveler as being “The Friendliest Town of All” is just one of many aspects that will most likely boost property and business values in the area for years to come. On a side note for connoisseurs, Cathay Pacific’s Inflight Magazine, named the martinis at Naughty Nuri’s restaurant in Ubud as being one of the top five best in all Asia.

3. Adding to Ubud’s media frenzy buzz, the town was prominently featured in the wildly popular, global best selling book, “Eat, Pray, Love,” which remained on the New York Times Best Seller List for a staggering 187 weeks. Oprah Winfrey devoted two full episodes of her show to discuss the book’s success, which was soon followed by a Hollywood movie of the same name starring Julia Roberts, who won the 2001 Academy Award for Best Actress. Ubud’s recent accolades have intensified global investment interest in the town, which continues to show strongly augmenting revenues in the tourism sector of its economy. Property values and land rental rates for restaurants, shops, residences and hotels continue to skyrocket, which has stimulated even more interest in private real estate investment.

4. Notwithstanding the attraction of Bali’s rich ceremonial culture and its lush tropical environment, one contributing factor to the island’s dynamic rate of tourism growth is its low cost of travel expense when compared to high-key Western destinations in the States and in Europe or even in the nearby Southeast Asian cities of Singapore and Hong Kong. Indonesia’s average per capita income is approximately US$2 per day across much of the country and per capita income for workers in Bali typically is less than five dollars per day. Such low cost greatly reduces construction expense for new projects and the cost for staff once the projects are completed. This factor becomes highly attractive for not only foreign commercial real estate ventures but for private property investment as well. Retirees seeking exotic locales for retirement often place high-value-for-money-spent as a primary investment concern.

5. Living in Ubud has its rewards. Since the town is located in the center of the island at a higher elevation than the over-crowded beach areas further south, the temperature is several degrees cooler. And there’s a bit more rain in Ubud, which generally is of short duration, that nurtures the nearby verdant rice terraces–some of the most dramatic on the island. Ubud’s rich cultural heritage in art and dance has fostered a vibrant expat community of countless individuals involved in the creative arts, many as working professionals. A rich social network already exists in the town and it’s easy to tap into for newcomers. The magic draw of Ubud has triggered the opening of numerous art galleries, fine dining establishments and five-star hotel accommodations. Many foreign investors seek property investment opportunities in Ubud to capitalize on Bali’s lucrative tourist industry by tapping into the luxury holiday rental villa sector.

Ubud’s vibrant residential real estate market has spawned some of Bali’s most innovative architectural designs, many that incorporate structures rising from infinity-edged reflecting pools. The concept blends unique contemporary design with the traditional Balinese “alang alang” thatched roof. The climate is temperate all year long so glass-enclosed, open-air rooms can invite nature inside in an often striking juxtaposition of elements.

Today’s Ubud seems to have captured the most exotic aspects of Bali’s rich cultural heritage while it keeps abreast with the future. It surely has captivated the world’s attention.

Copyright Glen Allison ALL RIGHTS RESERVED

06.23
13

Vanished Malaysian Airlines Flight MH-370 Carlyle Group Get Total Ownership Of Semiconductors Paten

by como ·

It could well be appropriate to use the saying “fact is stranger than fiction” when it comes to the latest developments reported on the disappearance of Malaysian flight MH-370.

In a previous article echoing the sentiment of other alternative news sources I stated that the official story for the plane’s disappearance did not add up for several reasons:

1. The stated Indian Ocean crash would have left a large easily detectable trail of floating debris…

2. The flight had been detected for at least 4 and up to 7 hours before its signal was lost, which indicated it may well have travelled much further than the Indian Ocean and…

3. No witnesses or dead bodies were found to tie the official story in that it had crashed in the Indian Ocean.

-I concluded with the suggestion that all this suggests a blatant cover-up…

Now the latest story going ’round is even more bizarre.

Out of the 239 passengers on board the flight, 20 were working for a semiconductor company called Freescale. The 20 Freescale employees were on their way to a conference in China. Of the employees, 4 were senior level engineers and owned 20% each of shares tied to patent ownerships (as documented by reporter Shepard Ambellas). While these 4 engineers together therefore owned a total of 80% in Freescale, the remaining 20% of the patents shares worth billions in total were owned by the company.

However, it has been established that the Carlyle group had bought up Freescale some 8 years ago. It has been said that the Carlyle group has a shady history. During 2001 just after 9/11, it was revealed that the Bin-Laden family had invested many billions into the company and were doing business with the Bush family… Post 9/11, members of the Bin-Laden family after they had fulfilled the conditions, that being ‘to invest more money in the Carlyle group,’ were allowed to sneakily fly out of the USA unchecked…

It has been stated that what had convinced the Bin-Ladens to invest more in the Carlyle group was the promise by George Bush senior, chief advisor at the time, that the company’s defence industry profits would be about to increase dramatically post 9/11 and indeed they did. -Other said controversies continued to follow… effectively allowing people in high places to become a law unto themselves…

Now, incredible as this is about to sound, this is where the Carlyle group find their way into the circumstances surrounding the vanishing Malaysia airlines flight MH-370. The above mentioned patients were filed 4 days after the flight vanished and because the 4 engineers, 80% owners of the patents, are now considered dead, total ownership now goes to Freescale, which, remember, is owned by the Carlyle Group!

As told by whistleblower Edward Snowden, surveillance is rife throughout the world and the Carlyle Group has massive ownership and control in this sector too. Could the group have had a hand in the lapse or lack of surveillance in the vanishing flight MH-370 so they could profiteer from the deaths of those 4 engineers..?

Bizarre as this story sounds, some think this might be a plausible explanation for the cover up that I mentioned above with my 3 points.

If you liked reading this article then go to www.NewParadigm.ws for more related articles including a free download PDF. NewParadigm is a portal to transformation, consciousness, spirituality, mind, body, health, alternative media and much more… Hosted by Paul A Philips. Once again the link is: http://www.newparadigm.ws/

06.11
13

Disciplined Investing Will Overcome All Market Conditions

by como ·

When you are a professional, you must be disciplined in your business ventures to succeed. The same goes for stocks when you are investing in the stock market. Disciplined investing takes training and practice. While you may be able to manage your stocks, the discipline part will get better with practice.

Individual investment losses are caused by several different factors. Some of these factors include bear markets, lack of knowledge, poor investment choices, bad advice, companies that go bankrupt, selling off your emotions, and buying at the wrong time. While all of these are factors that play a role in the health of your investment portfolio, with disciplined investment strategies you can overcome all of the factors playing a role in failure.

Any investment expert will tell you that a lack of discipline is the primary reason why investors lose their life savings in the market. While most experienced investors know this, it is a wonder why nearly half of all new investors fail. Is it that investors do not have the drive to stay disciplined or that they simply do not know how to be disciplined in terms of money and stocks? After all, discipline is a character trait that is inherent in most of our species. While children know how to use discipline early on in life, as we age, we choose when we do and do not want to be disciplined. When you are involved in a sport or a hobby, chances are you practice to get better. This discipline is the same type of skill that should be focused on your investment portfolio.

Disciplined investing does not mean there is a special formula for investing to become a millionaire overnight. It means that you must approach the market like you are approaching your favorite sport. One of the main reasons investors have difficulty investing in a disciplined manner is because they don’t follow specific rules about the right type of investing. By following proven rules, you can succeed.

Having successful strategies that are geared towards long term earnings should be considered rules in investing. It is important to learn strategies that work and then follow them to the “T.” Just like when you are playing a sport, you cannot choose to ignore a flag on the play if you do not feel like losing 10 yards on second down. The same goes with investing. You cannot simply ignore a precursor because your emotions are telling you to ignore it. This will lead to failure quickly.

Successful investing can be simple, methodical, and logical. The rules you should follow when you are learning how to invest are not complicated. With the proper set of rules you will be able to act decisively under all market conditions, avoid large losses, and manage your portfolio on your own. Stand on your own two feet and determine your own financial future with disciplined investing.

05.17
13

Discovering Untapped Investment Opportunities In Paraguay

by como ·

The hit of the global economic crisis coupled with the harsh and extended drought has transformed the once-vulnerable Paraguay, with its rich agricultural industry and extensive hydro-electricity resources, into an attraction for foreign investors

Canadian entrepreneurs and investors Neal De Florio and Daniel Wang, Principals of Monarca Capital, are smitten with Paraguays stable economy, high incentives, low taxes and abundance of water, extensive arable land and clean electricity, oil and gas. The strategic geographic location of Paraguay, nicknamed the Heart of South America is at the heart of the highest income region of the continent, which accounts for almost 50% of South America`s GDP, say the investors.

Wang and De Florio are in for the long run. They have worked diligently to identify a number of investment opportunities in Paraguay in the banking, agricultural, real estate ,and infrastructure sectors. De Florio says, Our first priority is to find the right partners in Paraguay, then we focus on the opportunities that are available to us in each of the specific sectors we have earmarked. Doing business with honest and ethical people is paramount to long-term success in foreign markets.

Monarcas long-term aim is to develop funds for multiple sectors with foreign equity combined with traditional debt and/or fixed income securities. According to Wang, investments into Paraguay would be best suited for the mid-sized institutional investor or high net worth private investors. He says, You wont necessarily find deep discount opportunities as you would in the United States after the financial crisis, but you will find exceptional opportunities below their intrinsic value and at discounts compared to its neighbouring countries of Argentina and Brazil.

The stigma of corruption in its banking sector cant be easily dismissed, but Wang believes the Paraguayan banking sector is solid due to much improved and notably stricter regulations under the direction of the Central Bank. The development of inter-banking systems has resulted in increased interest from international banks such as Banco Regional, which is 40% owned by Rabobank, HSBC, and Citbank, he says. The entrepreneurs are also encouraged by a recent press release announcing Paraguays two largest banksInterBanco, a unit of Brazils Ita Unibanco (NYSE: ITUB), and the local subsidiary of Spains BBVA (NYSE: BBV)both posting the biggest profits in the system from January to August of this year.

While Paraguay enjoys the backing of its international banking partners, it cannot be denied that only 20% of its population has access to financial services due to its extensive rural areas. De Florio and Wang have identified an opportunity in the very need to shift banking from the current 75% dominant sight deposits (similar to that of chequing accounts) to medium- to long-term financing and broaden banking participation. There are plenty of development opportunities to fill that gap. Paraguayan banks and the government are committed to achieving widespread access to financial services in the country, says De Florio.

In the real estate sector, De Florio and Wang strongly believe developing low- to middle-income housing is an opportunity to cash in on a strong demand to alleviate the housing shortage.

Nothing could be more surprising than Paraguays recent historical milestone. After a decade, Brazil decided to increase Paraguays compensation from $120 million to $360 million for its share in operating the worlds largest energy-generating plant, the Itaipu Hydroelectric Power Plant, jointly owned by Paraguay and Brazil on the Parana River. Paraguay will soon enter into the Brazilian energy market as the agreement will allow Paraguay to sell its unused power in Brazil. Investors can look forward to infrastructural developments with the replacement of obsolete electric transmission lines by 2012. The powerful lines will increase Paraguays current 10% generating capacity to correspond with its industrial growth. While other emerging agricultural sectors could account for a deficit because of inadequate water supply, Paraguays advantage of having extensive water reserves and arable land together with low energy costs will continue to boost agricultural investment incentives.

For Monarca, Paraguay is a country with unlimited growth potential and unrivaled benefits. With Paraguays equidistance to Brazil and the Atlantic Ocean and to Chile and the Pacific Ocean, and with Rio Paranas natural borders to Brazil and Argentina, Paraguay enjoys access to main commercial centres, free ports, regional ports, barges and transatlantic ships.. It is a land where the VAT is, at 10%, the lowest of all South American countries; a land where 0% is applied to import tariffs on capital goods, capital transfer for investments of more than $5 million, and payments of interest on foreign loans. And, Paraguay is the ideal country for a business platform for logistics and distribution centres, IT, call centres, financial services, light manufacturing, vehicle and machinery yards and tourism offices.

For other foreign investors, Paraguay awakens an anxious attraction. Moving in the direction of greater investment transparency, stricter guidelines and minimized risks and costs, Paraguay is positioned to break down its barriers and could prove to be among the first in Latin America to emerge as paradise found.

Priti Ramjee is the President of Stratagem North, Ltd., a Canadian company. Priti has been specializing in global opportunities for asset based lending for eight years.

05.5
13

Pros and Cons of Stock Warrants

by como ·

While stock warrants do provide a means of entering the share market without actually buying shares, they they do have pros and cons.

While stock warrants do have benefits they also have a downside that makes astute investors somewhat wary of purchasing them. Here are some pros and cons.

Pros:

* Buying stock warrants is much cheaper; it allows the investor to get shares in a company with less capital outlay. This is good if you are looking for capital appreciation as opposed to income.

* The percentage gain is often greater than if shares were purchased.

* Stock warrants have greater liquidity – at least at the present time. This is due to the promotion by marketers.

* The short to medium term often nets good capital appreciation.

Cons:

* Stock warrants can become worthless after they expire – not good if you are still holding them. Even if they were given for free as part of another deal there is that opportunity for gain lost.

* No dividends apply to stock warrants. So if you invest in stock warrants in blue chip industries you forego the dividend you would have got with buying the actual shares.

* When the prices of stock warrants change someone – buyer or seller – is going to be the loser.

So what is the best time or way to purchase stock warrants? If your assessment of the situation tells you that there is going to short or medium term gain you could buy stock warrants. You could also use them carefully by allotting a smaller percentage of your capital investment in stock warrants for the same financial benefit or risk that you would incur if buying the mother shares. Then you could invest your remaining (larger) portion of capital into something that is even better.

Mel writes about stock warrants among other finance related topics.