Sure, here are two simple explanations of opportunity costs when investing in shares:
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Lost Spending Money Cost: When you invest in shares, you're using your money to buy stocks instead of doing something else with it. For example, you could have used that money to pay off debts, save it in a bank, or even buy something you need. By choosing stocks, you give up the chance to use that money for other possibly better options.
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Alternative Investment Chance: Investing in shares means you can't be invested in a different type of investment that might have given you a higher return. For instance, you might have missed out on a higher interest-paying savings account or a safer bond that could have earned you more cash. By picking shares, you might lose the potential benefits of those safer or potentially more profitable investments.
Remember, these opportunity costs are about what you don't get to do with your money because you chose to invest in shares.
