Real Estate vs Stocks
Ronaldo Garcia
Co-Presenters: Individual Presentation
College: College of Business and Public Management
Major: Finance
Faculty Research Mentor: Huaibing Yu
Abstract:
Two of the most well known investments options for investing are stocks and real estate, each with its own advantages and disadvantages. Stocks are typically more unstable when taking market risk due to dependable components such as corporate performance, investor views, and economic conditions. In the constant rapid changes in the stock prices can lead to both high risk and high reward situations. In comparison, real estate is usually less at risk of sudden shifts, which makes this a reliable investment. It still involves market risk, which are impacted by variables including interest rates, local economic conditions, and demand for real estate.Stocks have the potential for both large gains and larges losses when it comes to risk analysis. Stocks are so liquid investors can purchase and sell them rapidly and often for not much money. In comparison, real estate is much less liquid. Stocks may produce short term gains in term of return on investment (ROI) through dividends and appreciation in price, especially to investors who are skilled at timing the market. Real estate provides longer term, more reliable returns through increased property values and rental income.