Investing in Social Stock

There is always a certain amount of liability when investing in the stock market. Fluctuating graphs of returns and losses testify of this supreme law of the investing world. This fact makes investing risky. Generally the more risky the investment the more potential return/loss is available. When investing in social stock keep this in mind. Social stock is at a very basic and limited investing levels fairly risk free. Acquiring a select few stocks in which a limited amount of resources are allocated in a responsible and frugal manner is fairly low risk. An individual will avoid entangling alliances and generally reap modest return on a fairly insignificant investment. For example if an individual acquires a professional acquantance he or she can obtain professional advice or aid if the need for such assistance presents itself. The risk of an investment such as this one only occurs in the case that favors begin to be exchanged in an irresponisible and risky manner. In short investing in a couple professional acquantances can be very beneficial if such stock is only frugally invested in.

Naturally not all stock is as low risk and by association low reward as acquantances. A barely friend can also be a fairly responsible yet slightly more risky and rewarding social investment. A barely friend requires limited time and resource investment outside of the professional sector of one's life. A barely friend still runs a low risk like a proffesional acquantance with a modest return potential. A barely friend can provide birthday well wishes and potentially a person to ask a small (never large) favor of like borrowing a dollar when going out for a lunch (another potential bonus, although never offer to pay for a barely friend that is pooling too many resources in one stock). The risk for a barely friend are that this individual might attempt to be more than a barely friend. This might initially seem like an acceptable move but there are severe risks in that kind of social investment.

This brings us to the next level of social stock, the friend. Friends are a fairly risky investment. They require more time and effort than either of the previous categories although there is a substantially higher return on such an investment. Returns could be as high as recieving invitations to particiate in activities or even as high as having a good time. Given the returns one would have to be an idiot not to invest heavily in a certain friend or friend group, right? Wrong. Returns on friends can be glamorous but they are often fickle. One must be careful in overinvestment in friends because friends are often fickle. A friend investment requires significant upkeep fees and can easily stop providing postive interest without constant care. A friend can turn into a burdon either by attempting to become more than a friend or by becoming far less than one becoming an enemy. Because of the risky nature of friend stock a wise individual will diversify friend investments with the knowledge that friend stock is high risk. The risk rate is lowered substantially by avoiding high concentration of investment into a single friend stock or stock group. Although the potential returns are also lowered the risk becomes manageable. Individuals who over-invest in a single stock often find themselves without any social stock and consequentially find themselves investing in blogging or other activities that don't require social capital.