February 13, 2009

Renting Shares For Income in the Stock Market

By Planet Wealth

– First of all, let’s cover what we mean by this phrase. We use the term ‘Renting’ our stocks, because everyone understands this in terms of property. We buy a house or apartment, we become a landlord, and we rent it out to someone else. We receive money (rent) over a designated period.

Well, we can do nearly exactly the same thing with stocks. We can buy stocks and then rent them out. If we already own stocks, we can rent them out. We choose the rental price at which we want to rent them, we choose the rental amount we are pleased with, and we choose the time period we want to rent them out for.
And the stocks we ‘rent out’ can’t trash our house, can’t be late with their payments, and they can’t keep asking us to fix things for them. They are a lot less demanding tenants than real people!

But, if we go to our stockbroker and say, “I have some stocks I want to rent”, he will no doubt reckon we’ve gone crazy, and will have no thought what we’re talking about.
So, what we need to do first is know how to talk like a stockbroker!

What new language do we need to know to speak like a stockbroker? It’s called options.
You may have had some experience with options, or heard about them, and may have even been told they are very perilous (by ill-informed people un-educated or inexperienced in option trading, no doubt!)

To find out how you can rent shares from the US market please visit our income guarantee page.

If you want to find out how to Rent Shares in Australia please visit our page here.

photo credit: zombieite
photo credit: zombieiteRenting Shares