We are independent & ad-supported. We may earn a commission for purchases made through our links.
Advertiser Disclosure
Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.
How We Make Money
We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently of our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.

What is Buying Outright?

Malcolm Tatum
Updated Feb 22, 2024
Our promise to you
WiseGeek is dedicated to creating trustworthy, high-quality content that always prioritizes transparency, integrity, and inclusivity above all else. Our ensure that our content creation and review process includes rigorous fact-checking, evidence-based, and continual updates to ensure accuracy and reliability.

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

Editorial Standards

At WiseGeek, we are committed to creating content that you can trust. Our editorial process is designed to ensure that every piece of content we publish is accurate, reliable, and informative.

Our team of experienced writers and editors follows a strict set of guidelines to ensure the highest quality content. We conduct thorough research, fact-check all information, and rely on credible sources to back up our claims. Our content is reviewed by subject-matter experts to ensure accuracy and clarity.

We believe in transparency and maintain editorial independence from our advertisers. Our team does not receive direct compensation from advertisers, allowing us to create unbiased content that prioritizes your interests.

As an investment strategy that is different from buying on margin, buying outright means purchasing an investment opportunity with liquid financial resources that are in the possession of the investor, usually in the form of cash on hand. Buying outright does not involve securing any type of loan in order to acquire a new investment, whether from a broker or a private source of funding.

Buying with cash rather than relying on a combination of cash and secured credit does have some advantages. Foremost among the reasons to engage in buying outright is that the transaction is a simple one. There are no allowances to be made for interest payments on a loan, no records to keep on the current status of a brokerage loan, and nothing that will need to be repaid, regardless of the future performance of the acquired stock or security. The investor has complete control of the investment, with no collateral tied up as part of the financing process. This means no additional resources are involved in the acquisition. It is strictly a cash purchase that, once complete, has no lingering loose ends to address.

Buying outright also makes the process of selling a stock or bond issue an easy process. The net profits that are realized from the sale are totally the property of the investor. There is no need to factor in payments other than the usual processing fees that are invoked by brokerage firms. A lack of incidental matters to address means that the actual process of selling stocks and securities is streamlined for the seller. With less time and resources involved in the transaction, the seller is able to quickly focus his or her attention to other moneymaking projects.

While buying outright does have some advantages, there are situations in which the strategy is not the best method to employ. For investors who would have to tie up much of their cash assets in one investment opportunity, there is always the chance of losing a lot of money if the investment fails to produce revenue. Unless the investor has a great deal of cash reserves to call upon, buying on margin may be a much better choice when it comes to acquiring new stocks and securities for the investment portfolio.

WiseGeek is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
Malcolm Tatum
By Malcolm Tatum
Malcolm Tatum, a former teleconferencing industry professional, followed his passion for trivia, research, and writing to become a full-time freelance writer. He has contributed articles to a variety of print and online publications, including WiseGeek, and his work has also been featured in poetry collections, devotional anthologies, and newspapers. When not writing, Malcolm enjoys collecting vinyl records, following minor league baseball, and cycling.
Discussion Comments
Malcolm Tatum
Malcolm Tatum
Malcolm Tatum, a former teleconferencing industry professional, followed his passion for trivia, research, and writing...
Learn more
WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.

WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.