Investing for Beginners .EU, investing

investingforbeginners.eu Most of the time common stocks are subject to irrational and excessive price fluctuations in both directions as the consequence of the ingrained tendency of most people to speculate or gamble... to give way to hope, fear and greed.
Benjamin Graham

Investment Dictionary


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Passive Income

 

Passive income is an earnings that person receives consistently for a long term from some stable sources. One and most probable source of passive income may be income from investment. 

 

For example, if a person wants to get $2000 every month and low risk annual interest rate in the markets is equal to 5% (which is highly probable) then he needs $480k of capital for investments.

 

Also there might be other sources for passive income: property rent, royalties, dividends from main business and other.

 

 






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