Renting Stocks for Income in the stockmarket
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 almost 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 happy 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!
However, if we go to our stockbroker and say, “I have some stocks I want to rent”, he will no doubt think we’ve gone crazy, and will have no idea what we’re talking about.
So, what we need to do first is understand 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 dangerous. Not if you do it right and we teach you everything you need to know.
To find out how you can rent stocks on the US stockmarket please visit www.planet-wealth.com/investment-strategy/renting-stocks.
- Andrew Ralph's blog
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