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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