Category

Corporate Finance Tools

Category

What’s better than making money?

Learning to make money while you sleep!

Waking up wealthier than when you went to sleep is a great feeling. You don’t have to be ultra-rich to make money while you sleep. There are things you can do wherever you are in your financial plans so that you can create passive income sources.

Continue reading this article to learn how to create passive income streams that will pay you while you’re catching zzz’s.

The 411 on Ways to Make Money While You Sleep

Linear income is income you make by the work you do. You have to be there to make a linear income.

Passive income is income you earn by doing little to no daily work to keep it coming. That’s the kind of income we like, isn’t it?

1. High-Yield Savings

If you’re extremely risk-averse then high-yield savings accounts are a good way to generate passive income. While the returns aren’t very high, you don’t have a lot of risk with a savings account as you do with other options.

Most banks don’t pay enough to make any difference in your cash flow but if you go with an online bank, you can get some decent interest on your savings.

2. High Dividend Stocks

Ready to stop playing around with small returns? High dividend stocks can help you get into higher ROIs than high-yield savings. You do have to keep in mind that there are more risks with this investment.

Keep in mind that you can gain income from dividends and capital gains. Find a good brokerage with low fees and you’re off to the races.

3. Passive Real Estate

Real estate doesn’t sound like very passive investment, does it? You may be thinking about people flipping houses or managing renters. The good news is that this is not the only way you can make money from real estate.

If you own properties that you want to rent, you can hire a property management company to take care of this part of things. You simply have to be responsive when the property management company needs you for any major decisions.

There are other ways to make your real estate investment passive such as using a company like Fundrise or Realty Mogul.

4. Invest with a Robo Advisor

Don’t want to make your own decisions on what investments to buy? No worries — robots can do it for you.

These smart algorithms take the guesswork out of which investment plan is the best for you. When you use a robo advisor, you input your willingness for risk and the robo advisor is off to make a decision for your financial future and success.

5. Invest in CDs

CDs are another safe way to grow your money. They have a little bit better rates than high-yield savings accounts but you have to commit to keeping your money in the accounts for a certain amount of time.

The longer you commit to having your money in the CDs, the more money you’re going to have on the other side when the CD is mature.

One of the good things about CDs is that your interest is locked in no matter how much interest rates fluctuate during the length of your CD.

6. Invest in Index Funds

Investing in index funds allow you to invest in the general market. No worrying about which investments to pick or when you need to rebalance your portfolio.

7. YouTube

YouTube channels that are making big money aren’t only the gamers that you hear about. There are channels on beauty, kids opening toys and much more that are making a nice income on their videos.

8. Affiliate Income

Affiliate marketing is when you market other people’s products and get paid for commissions that come from your specific tracking URL. Affiliate income off a product can be anywhere from a few cents for a lead to hundreds or even thousands of dollars as a commission on a sale.

Creating a way to get the right people to those links can allow you to make a nice passive income. Blogging is one of the ways many people use to get traffic to affiliate offers.

9. Selling Ad Space

Another way to make money if you have a blog other than affiliate marketing is by selling ad space. If you can get people to look at your blog then advertisers want to get in front of those people as well.

You can charge individual businesses or you can use ad networks like Google’s own Adsense or companies like MediaVine.

Selling ad space can make a good income but it does take a lot of traffic to move the needle.

10. Create an Online Course

Chances are you know how to do something other people would like to do. If you create an online course, you can direct people to that course and earn money from each of the sales.

While you only get a percentage of the sale amount with affiliate marketing, when you make your own course, you get the whole amount of the sale. Since the course is a digital course, you don’t have a lot of costs so the profits are high.

Once you’ve made the course, the work you have to do is very minimal.

Ready to Up Your Money Game Even More?

Now that you know some great ways to make money while you sleep, why not continue learning more about making your money work for you? Or even better — other people’s money?

Read our article on debt today to learn when debt is good and when it’s bad.

When you start a small business, you’ll need to stay ahead of the game with the way you handle your finances and obligations.

For starters, put some tax strategies together that will help you pay the government and keep your business afloat. By considering the strategies that’ll help you handle your obligations, you’re better able to let your business grow the way it’s supposed to.

Follow these strategies to get the help that you need with your business taxes.

1. Get Strategic and Diligent About Your Expense Deductions

The first thing you’ll need to know about tax strategies is how you can get deductions. Since you have expenses that eat into your budget, it’s only right that you get a return on this by reducing your tax bill.

To reduce your tax bill, you will need to keep track of your deductible expenses. Some examples of these deductions include business utilities, supplies, office mortgage or rent, travel, and education.

These are the deductions that will help your business keep more cash flow.

2. Save Your Tax Money in a Separate Account and Pay Quarterly

You’ll save yourself a lot of trouble by paying estimated taxes each quarter.

To keep track of your tax money, you will want to open a separate bank account in which you only put tax money aside. That way you won’t be tempted to spend it and will handle your taxes on time.

Paying your taxes early requires preparation, so don’t cut corners.

3. Ensure You Have the Right Business Designation

Small businesses can be filed under several different designations, to include sole proprietorship, Limited Liability Company (LLC), and general partnership. As such, each business type has different tax considerations and obligations.

For example, a sole proprietorship will still involve self-employment taxes, while other small business types will require you to pay taxes on your employees. Choose the business designation that is both accurate and advantageous to your company.

4. Understand the More In-Depth Deductions You’re Entitled To

There are always deductions that you might be entitled to that you aren’t aware of. Each year the federal and state government put out new tax credits, so you will need to get in touch with a certified public accountant (CPA) that can help you take advantage of them.

You’ll also need to be aware of potential tax implications for everything from health insurance to stock options.

5. Keep Track of all Your Records

Being organized is the name of the game when it comes to running a small business. You should keep tabs on all your paperwork and also be sure that you keep digital records.

For example, if you outsource projects to independent contractors, be sure that you keep track of all your 1099 documents. Never throw away your tax returns, as you never know when you’ll need to reference them.

Consider These Tax Strategies For Your Small Business

There are several tax strategies you’ll want to employ when you are trying to do right by your small business. Mastering this info will help your company thrive.

Think about these tips and stay tuned to our content for more info on investment banking, taxes and so much more.

Approximately 63% of all companies state that generating leads online or website traffic is their biggest challenge. But, why is it so challenging, and what can you do to improve results?

Before we look into how to generate leads online, let’s answer a more important question, ie. – what are leads?

There’s this common saying about how you can lead a horse to the pond, but can’t force him to drink from it.

Let’s assume the pond is your business website, the horse is your customer and water is the product you sell. Your ultimate goal is to get the customer (horse) to buy (drink) from your website (pond).

But what if you didn’t have this horse, to begin with? You’d have to go look for them or set up a system that directed dehydrated horses to your pond. That’s where lead generation comes in.

Online lead generation is all about finding these metaphorical horses and thinking of effective strategies to get them to your pond.

So, How Can You Generate Leads Online?

The virtual world literally sees 3.01 billion users. That means, 3.01 billion potential leads, waiting for you.

Here are 9 tips to help you reach them.

1. Use Social Media Wisely

Now, this might seem like it’s straight out of marketer’s 101, and who didn’t know that, right? Fair enough. But what a lot of people don’t realize is that social media is not limited to just Facebook and Instagram.

Finding the right platform to advertise and connect with prospective leads can be quite challenging.

So how do you choose the right one?

Finding Your Niche

It is of course, undeniable that those are perhaps the most effective of the platforms, in general. However, sometimes your brand might be targeting a niche audience, which would logically call for a niche platform.

To find your niche you will need to take into consideration the age groups you’re targeting, the demographic, the persona and what interests them. Millennials, for example, are notorious for their love of platforms like Instagram.

However millennial musicians might be easier to find on YouTube.

Getting Your Content Right

As a brand, you have a lot to say. You want to tell the world how great your product is, but almost nobody wants to hear that. Social media is all about finding content that is relevant and engaging to your followers, without deviating from your brand.

Timing Is Everything

Your content may now be on the right platform, targeting the right niche, but at the wrong time. Finding the right time takes a lot of research and trial and error.

2. A Visible, Accessible Website

The single most important thing for an online business is having a well-optimized website. This largely includes (but is not limited to) search engine optimization (SEO) for your site.

What Exactly Is SEO?

A good percentage of online leads are generated through organic searches alone. Search engine optimization, in a nutshell, is all about making sure your website visibility is strong. It involves a lot of keyword research, well-structured content, optimized landing pages, creating strong meta tags and descriptions.

Is Your Website Mobile-Friendly?

63% of internet users access the virtual world through their mobile phones. That’s more than a billion potential leads lost.

Creating a Fantastic User Experience

This could range from writing simple, effective copy to designing beautiful graphics. The idea is to enhance the user experience in every conceivable way. While this may sound like a complex idea its really just about making a simple, uncluttered website.

Monitoring web traffic is important to figure out whether or not your visibility is improving. If you are struggling to generate traffic, you could also consider buying an established website.

3. If They Can’t Find You, Find Them!

That being said, when it comes to reaching out via email, you have to be careful. Emailing prospective clients is especially tricky. You don’t want to be dismissed as spam or go unread.

You’ll need to go beyond a conventional promotional mail while sticking to the absolute basics.

  • An effective subject line
  • A personal touch
  • Highlight your benefit
  • Keep it short
  • A non-disruptive time

This will undoubtedly take some creativity and persistence on your part. Having a dedicated outreach team to work on prospective clients is one way to ensure consistent follow-ups and effective research.

The goal should be to collaborate with high traffic sites that are relevant to your service. E-wallet sites, offer sites and other similar platforms are a few sites you can consider to access leads in marketing.

4. Promote Your Brand

Online advertising is the fuel behind the fire. The reason digital advertising is so popular is that it’s so effective. Over the years, the multiplicity of options have increased making a cost-effective option for even small business who are still finding their ground.

Social media holds a huge percentage of the virtual population. However, while your advertisement campaigns might successfully get you a huge number of leads, they can also wind up being a bit of a disaster.

A good idea would be to run tests and trial ad campaigns to measure your success in smaller groups before you take a good, strong, swing at it.

This will help you experiment with and try out new trends while ensuring that your investments are set to maximize your profits.

Pay-per-click advertising allows you to target very specific phrases, making it easier for you to access your niche audience. This form of advertising is offered by most popular search engines like Google and Bing.

5. Get the Most out of Referrals

In a world where people have such an overwhelming number of options to choose from, you can bet that simply asking a friend is going to be their go-to.

One way to do this is to ensure that you’ve built a strong relationship with your current customers. This means having efficient customer service in place. Consistently responding to feedback, loyalty perks and following up on issues regularly is just as important as any other lead generation tactic.

If your current customers don’t like you they’re not going to recommend you.

However, with marketing, you generally need to give a little to get something in return. In addition to keeping them happy, you may have to consider offering benefits to current customers in exchange for a referral or recommendation to their friends.

For example, you might offer them credit points in return for a referral, or a discount on their next purchase. What you’re doing is creating a two-way street of reciprocity.

6. An Active Blog

What your blog post needs to be is the answer to someone else’s question. Not just any answer, a really good answer in a clutter of answers. As if that weren’t enough, even if you have everything they’re looking for they may not be able to find you.

So what can you do to fix this?

Keep Your Blog Updated!

This one is simple – the more content you have the more likely you are going to be found. A blog that is regularly updated with recent trends, ideas, and relevant information is going to seem more attractive to the average user.

Writing Simple, Readable Content

You’ve probably heard about the infamous low attention span, the bane of every content marketer’s existence. This massive influx of content makes it necessary to go above and beyond to keep someone engaged for longer than a minute.

This means your blog needs a consistent tone, format, and style that makes for a quick, simple, no-nonsense read.

It’s All in the Structure

A well-structured blog can keep users on your site for hours. Once you’ve got consistent great content, you can focus on the design. Is your blog mobile friendly? How do you subtly link your blog to your business? Don’t forget – this is all about generating those leads online.

7. Pay Attention to the Details

The details here include the consistency of your brand image across all platforms. You need a consistent USP, tone, and style of communicating in order to present a truly authentic image to potential leads.

We live in an age where the littlest things can put people off. However, the good news is the littlest things can also bring people in. Sometimes a single Star Wars reference might get someone to subscribe or follow you. A silly pun might get them to click on a link.

Simple phrases, or particularly creative design, a bit of authentic charity might earn you the trust of your audience. The point is, the world is an unpredictable place with impulsive consumers.

Online reputation management is also something you will need to consider. A single bad review can put off a hundred potential leads.

8. Embrace the World of Influencer Marketing

This works in a very similar way that referrals do. While a lot of people are wising up to marketing gimmicks, this new-age form of marketing seems to produce very real leads online for businesses.

Brands don’t really inspire trust anymore. However, trust remains a huge factor that determines whether or not people want to buy from a business. However, people have a fair amount of trust in people they know, respect and follow.

Hence, you may be able to leverage some leads by associating your brand with an influencer your audience trusts.

You’re most likely to find your influencer on social media and blogging sites than any other place. Your next dilemma might be choosing the right influencer for your brand.

In a lot of ways, micro-influencers might get you better leads than their big-name counterparts. The reason being, micro-influencers usually nurture their personal relationships with their followers, thereby, presenting themselves as more authentic.

As a business, your relationship with your influencer is crucial to the success of your campaign. Audiences often pick up on friction between brands and their influencers which does nothing to help you with your business.

9. Consider Hosting Your Own Webinar

Let’s face it, everyone loves free stuff. People love to feel like they’re getting something at a bargain. While this has to be a measured investment, if you’re somewhat of an expert in your fields, a successful webinar can substantially increase your chances of getting leads online.

Why?

Well, for one, it shows the world that you genuinely know what you’re talking about. For another, it can help you access people who are looking for answers that you can provide.

A lack of funds or budget constraints can sometimes make it difficult to invest in more effective lead generation strategies. In such a scenario, time management is especially essential to be able to appropriately analyze your results and figure out a cost-effective way to carry out your business.

All This Means Nothing Without Patience and Persistence

To be able to generate leads online, you need to be able to play the waiting game. For most people its the result of a consistent, collective effort to grow a business.

Some of you might subscribe to the idea that it is about having that one great idea that sets things in motion. However, while this may not be entirely unfounded, most “big ideas” come after years of deliberation, which goes to show that you do need some consistent effort to make it as a business.

Following these nine tips are a great way to start, and master, lead generation marketing. If you can pair these ideas with the right offline strategy, you’ll be well on your way to tapping in those leads online.

Like what you read? Check out our blog for more top-notch content on finance, investments, digital marketing tips, and all things corporate!

The American corporate debt is a staggering figure of $9 trillion. US companies borrow money on a regular basis and there’s a negative connotation attached to the word ‘debt’.

But there’s another side of the picture. If the companies don’t borrow money, nor take on a private equity investment, then they won’t be able to continue their operations and sustain the business for long and as a result, the national economy will collapse. So it’s basically debt that’s keeping the corporate world and the national economy going.

Now that we’ve established that debt doesn’t have to be necessarily bad, let’s dig deeper and take a look at good debt:

Understanding Good Debt

Taking debt is usually a burden for people because they’re worried about repaying it. But when you take debt to invest in assets that can yield profitability, your debt becomes good debt. You can earn from trading assets and make it a means of additional income. For example, if you buy stocks from the amount borrowed, you can earn dividends as well as profit when you sell them.

Here are some top ways you can convert debt into profit:

Invest in Leveraged ETFs

Leveraged Exchange Traded Funds (ETFs) are marketable securities that use debt to enable traders and investors to multiply the returns on a particular index fund. They’re traded on the stock exchange and amplify the returns by 200% to 300%. You can use these funds to invest in commodities, indexes, and bonds across different sectors.

However, ETFs can also work in the opposite direction and result in huge losses. But if you use a good strategy and knowledge about the financial markets, you can convert them into extraordinary profits.

Currency Trading

Currency trading—also known as Forex or foreign-exchange—is known as the buying and selling of currencies in foreign exchange markets for a profit. Two of the biggest benefits of currency trading are that you can convert a very small amount of money into significant profits in a relatively short period of time and the liquidity of Forex market, which means you can withdraw your investment any time.

Forex market is the largest capital market in the world with a daily turnover of $3 trillion and a number of people take debts for currency trading.

Real Estate

Real estate is an appreciating asset, which means its value always tends to increase over time. Many people borrow money to buy real estate, sell it at a profit, repay the debt and use the return on their investment to buy another property. They keep on repeating this cycle and earning increases profits.

You can buy a property that has a high return potential at a low price and sell them at higher prices. Real estate auctions organized by local or state governments are a great place to buy undervalued properties.

Visit our website, Money Cash and Value to explore about leveraged finance and value creation. Our educational resources will help you understand the concepts in detail so you can use debt as an investment to yield profitability.

Fiscal policies refer to how governments spend and employ taxation to influence economic conditions, such as demand for employment, goods and services, economic growth, and inflation. The government’s decisions are aimed at regulating business cycles and balancing the economy in a way that allows them to create favorable conditions that align with their overall policies and goals.

When a government uses fiscal policy to increase economic growth, it’s known as an expansionary fiscal policy. In such cases, the government runs on a deficit, meaning their spending is greater than their revenue. This is done by giving consumers and business owners tax cuts, hence encouraging them to make investments and spend more.

On the other hand, a contractionary fiscal policy involves the government decreasing spending and increasing taxes to slow economic growth and control inflation.

What does any of this have to do with me?

Fiscal policies that are made at federal levels have an impact on the decisions and day to day lives of everyone in the economy—from ordinary people to large corporations and, of course, the state itself. All economic endeavors depend on such policies, making them incredibly relevant to all stakeholders.

Fiscal policy has an effect on share markets because it impacts rates of interest, taxes on income and investment, and given the nature of fiscal policies, the decision to invest may be inhibited or encouraged. Be aware of the current government’s policies before buying shares since your personal interests may not align with the federal policy.

As investors, it’s helpful to know what your government’s current policies are in order to make decisions that could end up either making you a lot of money, or costing you heavily.

Learn more about how financial decisions are made by reading our other blogs and articles.

In December 2017, President Trump signed the Tax Cuts and Jobs Act (TCJA) that amended the Internal Revenue Code of 1986 and altered the tax framework in the United States. Since then, there has been a lot of speculation and debate on how the Act is affecting and will continue to affect the business world.

Let’s understand how the tax cuts can affect your business:

What are Tax Cuts?

Tax cuts are deductions in the tax rate by the government. The government lowers the tax rates for businesses as an incentive for their owners and investors to encourage them to do more business, which strengthens the national economy.

Revised Corporate Tax Rate for C-Corporations

The U.S. has one of the highest tax rates in the world but most of the big corporations aren’t the highest paying tax entities because they navigate their ways around it. TCJA lowered the corporate tax rate from 35% to 21% and introduced a flat-tax rate for all the C-Corporations.

The act also changed the U.S. tax system from global to territorial so if your business is legally registered in another country, you no longer have to pay taxes according to the U.S. tax rate. Instead, each of your business’ subsidiaries will pay the tax rate of the country it’s incorporated in. This will encourage business owners who offshore their companies in other countries to bring some of their business operations back to the U.S.

New Tax Rate for Small Businesses

Most small businesses in the U.S. don’t structure themselves as C-Corporation but they can still benefit from the tax cut. Most small businesses are organized as pass-through entities and unlike C-Corporations, they aren’t taxed entities themselves but their owners pay taxes on their profits at their individual tax rate.

So, if you’re the owner of a small business, according to the new act, you can deduct an amount up to 20% of your company’s net income in addition to all other deductions.

You can learn more about taxation and different tax reforms on our website. We post about the latest news pieces from the financial world and help our readers understand how these developments can affect their business.

Leveraging is a way to generate capital using borrowed money. Most of the time, it entails using loans or ‘borrowed capital’ to invest in potentially profitable assets with high returns.

There’s definitely risk involved when leveraging, since it’s possible to drown in debt and suffer from losses that are impossible to recover from. However, the potential payoff can make the risk worth it.

Is it a smart idea?

All’s fair in love, war, and finance—since there’s no guarantee regarding any decisions made in these situations. You can make an educated and calculated guess and more often than not, fortune favors the brave.

Using borrowed capital to invest in assets is often done in the hope that over time, the asset will pay itself off. That is to say that the asset will increase in value and generate recurring revenues instead of becoming redundant.

Think of leveraged assets as a one-time or initial investment that’s going to be around for a while.

But how will these assets be of any use if they drive you into debt?

Well, an asset’s value is determined on how its leveraged: the more debt than equity it has, the more leveraged it becomes. Typically, assets purchased using leverage are high-value assets that can help with a business’s operations and profitability. For instance, a company that wants to retain control of its assets and operations can opt for leverage instead of selling shares on the stock market.

This way, you’re paying off people, banks, and firms you’ve borrowed from but not paying long term dividends or facing interference from investors. This can actually increase shareholder value because fewer people will be receiving dividends from the company.

The asset acts as a safety net too; if things don’t turn out as planned, the company or business owner can sell off the asset and recover part of their costs instead of losing out completely.

Want to learn more about leveraging assets and how leveraged finance works? Read our blog!

The trade war between China and the US has had wide-ranging repercussions. The tensions between both countries led to a drop in business growth, economic instability, and alarm among investors, business owners, and the general population.

Increased tariffs and taxes on Chinese goods increased prices significantly and caused the tech industries in both countries to suffer. Important technology, hardware, and software were unable to be exchanged and the trickle down effect was felt across the globe.

What this means for investments…

The trade war directly affects profits from investments. And while investors are looking hopeful, watching the economy continue to grow, there’s still a push towards preventing further tariffs. However, even increased tariffs and uncertainty didn’t seem to faze investors, with both Microsoft and Oracle stocks rising in value.

The Federal Reserve is predicted to cut interest rates considering the prevailing conditions. The war seems to be intensifying, but corporations like Apple have pushed for a truce, given the impact on taxes and rebates.

Signs of worry?

There’s no being certain that a deal will be struck, but between last month and now, the chances of some mutual ground being found are higher. Both economies have suffered, as have stock markets and financial hubs such as Wall Street, and businesses are concerned about the long-term effects these tensions will have.

It’s difficult to ascertain exactly what direction this modern warfare will take, but analysts are hopeful and expectant of positive outcomes. We can only wait and watch now.

To know the latest news and happenings in the finance world, log onto our website and stay informed about the things that could affect your life as a consumer or a business!

Corporations have hundreds and sometimes thousands of shareholders who buy their shares to maximize the value of their investments. The operations of a company are directed by its business goals and objectives and a need for sustainability to yield long-term profits.

So the question arises; can a company achieve all of its goals solely through its core business operations?

That’s where corporate investment comes in. It’s a tool that helps companies maximize their profits and shareholder value. Like individuals, companies also invest in different financial products to achieve their strategic objectives. A balanced portfolio is what increases the probability of success for their investments.

Here are some ways to create a balanced portfolio.


Identify your investment needs

Your investment strategy should be driven by your business’ policy statement and goals that describe why you want to invest and how you’ll use the returns on your investment.

For example, if the expansion plan of your company includes opening a new branch in another city, you can invest the surplus profits from the existing business units in high-margin assets to multiply your profits and use the returns on the new business unit. But if your goal is to integrate stability in your cash flows, you’ll probably look for safer investments.

Diversify your investments

Warren Buffet once said, “Don’t put all your eggs in one basket.” This is exactly how you can create a balanced portfolio. Diversify your investments by spreading them over different asset classes so if one asset devalues, you can still make a profit from other assets, which minimizes the overall risk in your portfolio in the long run.

Types of investments

Many companies invest in stocks, bonds, and other securities to increase their net worth, generate additional income, and keep the cash flow steady, even during an economic crisis.

Venture capital and firm acquisitions are also a good way to keep your investment portfolio balanced. Large companies invest in early-stage firms or start-ups that have high growth potentials. The acquisitions involve a transfer of ownership of an entity, usually a small company, to a larger firm.

The diversification goal applies even when you’re investing within the same asset class. For example, if you’re a manufacturing company that’s affected due to inflation, you’ll want to invest in companies in a different industry so you have an ongoing cash stream to help you sustain your business operations.

You can learn more about corporate finance here at Money Cash & Value.

Tensions arise as stocks plummet with discord between the U.S. and China. Wall Street, one of the biggest financial hubs of the world, expects the U.S. economy to take more hits with this trade war between both super powers. Analysts and strategists see a general decline in the global economy too—such is the power of these two nations—neither of whom shows any signs of wavering.

What does this mean for the economy?

With no signs of improvement in sight, experts predict an increase in tariffs and taxation—as if the increase from 10% to 25% wasn’t damaging enough—on Chinese goods, in an ongoing effort to prevent Chinese firms from going through with their acquisitions of U.S. firms and property. As a retort, earlier last month, the U.S. blacklisted Huawei, a Chinese telecom firm from acquiring U.S. components. Overall there is a growing aversion to Chinese involvement in the tech sector, which is a fast growing industry across the world. This tussle for power could affect companies working in collaboration, provided that the U.S. is one of the major tech innovators in the world, and China one of the largest producers of tech products.

What will happen to business owners?

This cut off between both countries is detrimental to the efforts of business owners that depended on each other’s efforts and the markets each country provided, which is why it’s equally distressing for Chinese companies to get cut off from Wall Street, the U.S. financial market that has helped them earn billions in the past.

Though political and financial in nature, Wall Street is at risk of becoming a battleground for these state level trade wars. The trickledown effect of which will be suffered by businesses and individuals not just in these countries but the world over, especially the global south.

To add fuel to the fire, there is an aversion and fear of China’s influence in the American stock market, which has led to an escalation of tensions rather than dissipation.

Keep up to date with the latest news from the world of finance by logging on to our website moneycashvalue.com.