How New Millionaires Make Their Money

It is estimated that 80% of millionaires in the USA are self made. In other words their money is not inherited or 'old money' in any sense as is usually thought. These people have made their own fortunes from businesses they have started themselves. Their wealth has been generated from a combination of new technology and complementary financial systems that have understood the importance of this new technology. Computing and the internet have increased the speed with which you can become a millionaire compared with the gradual accumulation of wealth in the 19th and early 20th centuries. Most of today's millionaires fall into 5 categories: Company Founders. These are entrepreneurs who have started their own businesses and sold their shares through an initial public offering. Most of the Forbes list comes into this category, such as household names like Bill Gates, Larry Ellison and Michael Dell. More than 4,000 companies have sold their stock through initial public offerings since 1995. Stakeholders. These are employees (non founders) who have shares in a private company and then make big gains when the company goes public. Microsoft has helped hundreds of its employees who had worked at the company since its beginning become millionaires through their stock shares. When CyberCorp which was based in Austin, Texas was bought by Charles Schwab in 2000, hundreds of its employees became millionaires including humble administrative assistants who were lucky enough to have shares in the company. Companies Acquired. These are entrepreneurs whose companies have been bought by other companies for stock or cash. Huge sums have often been made through selling a successful small company to a bigger competitor. Since 1995 as a result of global competition and consolidation, companies have made more than 108,000 acquisitions totalling $11 trillion. Money Movers. These are the major banks which move money around for their clients and keep a percentage for themselves. Major Wall Street banks pay out colossal bonuses with Goldman Sachs alone paying out $16 billion to its employees. In 2004 the 25 highest paid fund managers each made more than $130 million. Salaried Rich. The pay of US CEO's has jumped to more than 170 times the average worker's pay, up from 40 times in the 1970's. Most of this increase is due to stock. Executives of well-established companies can now reach levels of wealth than was formerly made by risk-taking entrepreneurs. Managers two or three levels down the corporate level are also making millions in pay. In 2006 more than 4,700 corporate managers were paid more than $2 million in pay or stock options. Conclusion. As has been stated 80% of millionaires in the USA are self made. The link between all these people is that the Internet is the medium through which they have accumulated their riches. Without the Internet they would have taken many years to grow a fraction of their enormous wealth. And the moral for the rest of us is that we all have easy access to the Internet and we can use it as a powerful tool to build our own wealth quicker and greater than in any previous period of history. © S. Knox Find out the Truth about Internet Marketing, Quitting Your Job and the Secret 'Systems' that Most Successful Marketers have to Discover Before they Get Rich. Click Here: http://chrisrempellazyaffiliate.blogspot.co.uk/ Article Source: http://EzineArticles.com/?expert=Sinclair_Knox Article Source: http://EzineArticles.com/7611007