Top 12 Must-Know Different Types of Investments

1. Stocks

Stocks represent ownership in a company. When you buy a stock, you become a shareholder, owning a portion of the company’s assets and profits. Stock prices fluctuate based on market conditions and company performance.

Pros:

  • Potential for high long-term returns
  • Liquidity, allowing for easy buying and selling
  • Possibility of receiving dividends
  • Access to ownership in large corporations

Cons:

  • Price volatility can lead to significant losses
  • Requires research and understanding of the market
  • Dividends are not guaranteed
  • Risk of losing the entire investment if a company fails

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