The Stock Market vs Prosper - Prosper
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How Does Lending on Prosper Measure Up Against the Stock Market?

The Stock Market

As someone looking for sound opportunities to grow your money, it can be difficult to know where to invest.

Weigh the risks for investing money or buying stocks

We don't need to tell you how volatile the market has been. And knowing just how long to invest in a healthy sector before it turns isn't recommended for novices. Fortunes can evaporate in a day, as we have all seen happen over the last several years. At Prosper, we want to help you by mitigating the risks of peer-to-peer lending as much as possible. And yes, there are risks. Private money lending through us is not FDIC insured, nor is it guaranteed. Some borrowers may default on loans, just as some companies you invest in may fail. To help avoid defaults, we provide you with the tools and data you need to make informed decisions to invest money. You can also diversify and spread your risk by bidding as low as $25.

Place a value on your time, too

Unless you have a crystal ball, effectively investing in stocks requires that you gather copious amounts of information on prospective companies, sift through it, and then guess where the market is heading.

Prosper makes things easier and more efficient. Simply perform a search on our site. Investors are free to peruse borrower listings and read their stories.

You can also filter the results by keywords, loan category, or credit information. For example, if you’d like to lend your money to a New York policeman with at least a B Prosper Rating, we can help you find one in moments (assuming such a borrower exists in our current pool of eligible borrowers).

Peer-to-peer lending: A viable alternative for you

With all of this in mind, we think Prosper provides an excellent alternative to the volatility of Wall Street and the conservative returns of CDs or money market accounts. Again, returns with us are neither guaranteed nor FDIC insured, but we believe we provide a much more lender-friendly, transparent environment.

Why not open your account now and learn more?

How Does Prosper Work?

Investors create an account, set their parameters, and purchase Prosper Notes. Each Prosper Note corresponds to a listing which sets forth the relevant details about the loan, including loan amount, Note rate, yield percentage, and borrower information. Any payment from a Prosper Note is dependent on the payments Prosper receives on the corresponding loan.

The Notes that correspond to specific borrower listings are offered by prospectus. Investors should read the complete description of the Notes and risks associated with making an investment in the Notes as well as other information about the Prosper model in the prospectus.

Prosper Notes are risk bearing and speculative investments for suitable investors only. If a borrower fails to make payments on the corresponding borrower loan related to your Prosper Note, you will not receive payments on your Note. There is the potential that you will not receive any payments on a Prosper Note. You should review the prospectus before investing through Prosper. Not FDIC-insured. Notes may lose value. No Prosper or bank guarantee.