Types of Investment

Stocks

Stocks are considered to be the riskiest type of investment. This is because the return that an investor can expect is based on the successful performance of a company – which is not guaranteed

When you buy stocks, you become a shareholder. This essentially means that you become the owner of the company and have a legal claim over the assets and income of a company.

Stocks are considered to be the riskiest because if a company does not perform well, your stocks could decrease in value, potentially becoming worthless if a company goes out of business.

Despite the risks, stocks are attractive because the upside is potentially unlimited. If a company can consistently perform well over time, its stock price may frequently increase.

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