Types of Investment


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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