Business Finance and Investment

Activity 6

Name: PADREQUILAGA, PRINCESS MAE A. Section: OA3F

Case Analysis 

Elison is nearing his retirement. He was able to save up to a significant amount of

money and is planning to invest it to earn something when he has already retired.
After considering a lot of factors, he came down with two choices; buy stocks or
construct a building to be rented out to others as a dormitory. 

Which option would work best for Eison and why? 

For me, it is conditional on how long he will work before retiring. Because the
ability to grow his money is one of the key benefits of investing in the stock market.
The stock market tends to increase in value over time, despite the fact that individual
stock values fluctuate on a regular basis. Investors often earn from investments in
stable organizations that can grow. On the other side, he could lose all of his money.
Investors will sell a company's shares if it performs poorly, causing the stock price to
collapse.
While real estate takes a lot of work, he has direct control over his real estate
ventures. Though he has no authority over demographic and economic changes, as
well as acts of God, he does have control over many aspects of the physical property
and tenants. He may substantially increase the value of his investment and develop
wealth by properly managing his total real estate portfolio. However, unlike other
investments, real estate transaction expenses can have a major impact on the
investment's value and make it more difficult to profit.