Stock Versus Cash
Let’s say you got $50,000 in your bank account, which you don’t need immediately. You can have many options with this cash. For example, you can just keep this cash, or you can invest this money in stocks.
Let’s say you would have invested wisely that money in some good stocks, and after a year, 50,000 would become $60,000. On the other hand, if you keep this money idle instead of investing in cash, then your opportunity cost will be the difference between 60000 and 50000, i.e., $10,000
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Opportunity cost examples that provide an outline of the most common Opportunity Cost.
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The idea is part of this collection:
Learn more about moneyandinvestments with this collection
The impact of opportunity cost on personal and professional life
Evaluating the benefits and drawbacks of different choices
Understanding the concept of opportunity cost
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