You have the potential for
unlimited gains and losses depending on how your underlying investment options perform.
Not exact matches
Caveat: To harken back to point # 4, since it's so important, the fight for dominance is between what we can
gain from all the other sales platforms versus what
losses we attribute to Amazon's exclusivity
and Kindle
Unlimited.
When you short a stock your
gain is limited to the selling price
and your
loss is
unlimited
When you buy a stock your
loss is limited to the purchase price
and your
gain is
unlimited.
The main pros
and cons of variable universal life are that since you have the benefit of potential
unlimited gains, you also bear the risk of potential
unlimited loss.
Consider that when buying stock (a.k.a. going long or taking a long position, in contrast to short) then your potential
loss as a buyer is limited (i.e. stock goes to zero)
and your potential
gain unlimited (stock keeps going up, if you're lucky!)
Variable life sub-accounts are direct investments
and subsequently offer
unlimited potential for both
gains and losses.