Lend and Borrow Money Online

There are now “peer-to-peer” lending websites that allow people to borrow money at competitive rates from lenders online. There is the site prosper.com, which allows the market to decide who gets funded. The site lendingclub.com is for borrowers with a FICO score above 640 and has a debt-to-income ratio below 30 percent. The site virginmoney.com manages loans between friends and family members. The site zopa.com works with credit union members.

The consequences of defaulting on a peer-to-peer loan are the same as a loan from a bank. Defaulting on a loan can have a negative effect on the borrower’s credit history.

Yahoo Declines Microsoft’s Offer

Yahoo has rejected Microsoft Corp.’s $44.6 billion dollar offer thinking that they can get a better offer from the company or find another way to pay its shareholders. Yahoo has said that they could possibly negotiate if Microsoft comes up with a better offer. If they don’t, then Yahoo will have to try to rebound financially on its own.

Some analysts think that Microsoft will raise its offer to $35 to $40 per share to make the negotiation. Microsoft was willing to pay at least $40 per share for Yahoo a year ago but Yahoo wasn’t interested in the offer because it was confident in its own strategy and plans. A higher bid could possibly hurt Microsoft’s stock price, because recently it has been falling. Microsoft’s market value has decreased by over $40 billion, which is 14 percent, since the bid was announced. The Yahoo takeover could be more trouble than it’s worth for Microsoft. Analysts say that Yahoo will have no choice but to take the offer if Microsoft raises its bid.

If Microsoft doesn’t want to pay more money then they can take their original bid directly to Yahoo’s shareholders. Microsoft has been seriously considering this by meeting with some of Yahoo’s major shareholders to get support for the offer. Yahoo could also make Microsoft not want them by issuing out more company shares so that it would make the company too expensive for Microsoft to want to buy.

Even though Yahoo has been suffering for the past two years, it still has one of the largest Internet audiences and is a very valuable franchise. Microsoft wants to use those qualities to compete against Google Inc., which currently has the lead in online search and advertising. Yahoo has been considering an advertising partnership with Google as an option to earn profits and stay independent. Yahoo is also looking for other companies that might make a larger bid than Microsoft, but none has come forward yet.

Yahoo is hoping that their stock value will not go below $20 per share if Microsoft decides not to make any more bids. If that happens then there could be a large number of shareholder lawsuits.

How to Invest Wisely

It takes a lot of skill to invest wisely. With the right information, knowledge, and strategy, you can turn pennies into lots of dollars. Here are some tips so that you can invest your money well.

First, you should find some information on how investing works. It is a good idea to go to the library and find books on investing. You can also visit sites, such as smartmoney.com and cnnmoney.com to find information.

When you decide where you want to invest, spread out your money by investing in more than one company or place. By doing this you can decrease your risk of a loss. It is a good idea to invest in companies of different sizes and industries. You can also invest in international markets.

You can hire a financial adviser to help you. You should find out if the adviser works on a commission or a fee basis and if they are affiliated with a mutual fund or bank. You can check an adviser’s credentials at cfp.net or napfa.org.

You should watch out for any type of fees associated with your investment. Mutual funds and stocks have operating fess. Be aware of high and low fees and types of investments that charge commissions. The less fees and commissions you pay the more profit you can make.

Now that you have learned about investments and fess, you should allow time for your money to grow before you thing about making any changes or adjustments. Investing is not a get rich quick scheme. It takes time, knowledge, and strategy. With the right elements, you can go very far with investing.