4 Ways Streaming Music Makes Investing Easy


(Photo: Stocksy)

Investing has always seemed to be complex, but one thing that's always been universal is music. Listening to your favorite songs or artists makes you feel good about your day, lifts your spirits in down times, and provides a means of interaction between either an artist and the listener or between two people sharing common interests in music tastes.

Music has developed over the years from vinyl records and 8-tracks to MP3s and now streaming services. Never in a million years did our grandparents think we'd be streaming Beyoncé's "Lemonade" on Tidal or paying less than $10 for unlimited music using Apple Music. The way we listen and incorporate music into our daily lives has become too easy and accessible, that we almost take it for granted.

But just as streaming services have made music that much more enjoyable, they've also made understanding the financial markets a whole lot easier too. Here are 4 Ways Streaming Music Makes Investing Easy.

1. Streaming Services vs. Brokers

Pandora. Rdio. Spotify. Tidal. Apple Music. So many options, but which one do you choose? Usually you choose one for simple reasons. Reasons could be cost, user experience, brand loyalty, etc. Regardless, it's not too much that goes into it. Just pick and play.

Choosing a broker to invest with works same way. You have names like Acorns, Betterment, Scottrade, TradeKing, and the list goes on. Some have cheaper fees than others, some allow you to open an account with little to no deposit, and other have great user experience with top of the line software. The bottom line is simply choosing one and if you don't like it, then switch to another. One monkey don't stop no show.

2. Music Industry Regulators vs. Financial Regulators

Just as with CDs and radio spins, streaming services require oversight by regulatory agencies within the music industry like SoundScan and the Recording Industry Association of America (RIAA). These and other entities are in place to protect artists and the industry from malicious behavior.

When it comes to investing, investors and brokers need to be protected as well from shady activities. The Securities and Exchange Commission (SEC), Financial Regulatory Authority (FINRA), and Securities Investor Protection Corporation (SIPC) are in place to do just that.

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3. Music Genres vs. Securities

Now that you have a streaming service of your choice, let’s listen to some music. Do you want hip-hop or rhythm and blues? Country or alternative? Pop or classical? The beauty of streaming music is that you can have access to all types of music genres at your fingertips and can play anything that fits your mood.

As stated on Investopedia, “A security is a fungible, negotiable financial instrument that represents some type of financial value.” Basically, it’s a type of investment. But there are several different types of investments. You can choose from stocks, bonds, exchange-traded funds (ETFs), currencies, and the list goes on. Many investors favor one type of investment over others just as they do when it comes to music genres.

4. Music Catalogs vs. Portfolios

As you enjoy music within your selected streaming service, you’ll begin to build a music catalog of your favorite artists and songs. This catalog can help generate playlists for your workout routine, drive to work, and even for cleaning around the house. Whether you listen to different genres or have a vast array of artists within the same genre, your catalog is going to be lit (at least by your standards).

Your investment portfolio is also a mix of different securities or specific investments within one security type. You can diversify your portfolio by owning stocks, bonds, and other investment types. But if you only like stocks, then you can diversify within it by owning financial, technology, and transportation stocks, just to name a few. Either way, your portfolio is going to be a collective of investments that you own just like your music catalog is a collective of tunes you like to bob your head to.

Investor Takeaway: Streaming services are the new “it.” We all like what Netflix and Hulu did for movies and television, so it’s only right music follows suit. But, just like we like a good track from Kendrick Lamar or J. Cole, we can also like a good investment to streamline line our financial success.

Disclosure: This editorial is by no means a solicitation to buy or sell any of the above-mentioned securities. It is merely a means for educational purposes. All investors are subject to their own research and due diligence.


#beyonce #tidal #apple #hiphop #kendricklamar

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