What is a millionaire?
A paper millionaire is a person who owns a million dollars or more investments. The difference between a millionaire of paper and a real millionaire is that a paper millionaire has a significant part of his money invested in shares and other types of securities, while the real millionaire has most of his money either in savings or investments that are unlikely to reduce value. However, investments in the stock market can rise rapidly and reduce value, which means that a person with a lot of investment on the market can be a millionaire one day, but not others and vice versa.
Very often, when people have a lot of money invested in the stock market, they will refer to their overall value as their "paper" value. This means that on the basis of reports on the performance of their shares, it is worth a certain amount of money. Here comes the term "millionaire of paper". Since the reports are changing day by day, it can also someone's position of a millionaire. As such, the paper mill has no firm understanding of the title "Millionaire".
When a market is growing very fast, it is common for people to invest in this market to become paper millionaires. A good example would be the bubble Dot-COM, which burst at the beginning of 2000. Many people were invested in DOT-COM, which became a paper millionaire, in some cases to drop the Pod-Hluboko below the one million dollars.
In order for a millionaire the paper to become a real millionaire, its investment must be partially or in its entirety of the stock market and put it in the bank. For people who make money with investments, this is not always a possibility. While some part of investment in the stock market can be withdrawn because profits are obtained, most investors keep part of their money in the stock market in the hope of earning further earnings in hope.
how it can take a while to improve enough money from investment in stockIn the market and to the bank account, it is possible for a person to be a millionaire in the long term before becoming a real millionaire. This process can take even longer if the market passes through a rocky period or if an investor makes a investment decision that leads to a loss.