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What are the risks of investing in stocks?
What are the risks of investing in stocks?
Yanmo avatar
Written by Yanmo
Updated over a week ago

Like every investment, there are risks with the stock market.

There are articles here and here that talk about this:

Making profit or loss is dependent on the rise and fall of share prices on the stock market.

There are two primary ways to earn money from investing in shares:

  • When the share/stock price rises and you sell at a higher price than when you bought. This is known as capital appreciation. For example, if you buy shares at $209, and the share price goes up to $250 and you sell the shares, you have made $41.

  • When a company, whose shares you have bought, distributes dividends (a company may distribute profits to its shareholders by declaring partial or full dividends). Companies pay dividends from the profit they make within a period, or when they sell an asset. Not all companies pay dividends.

We have created courses to help you better understand the stock market. You can click here and here to watch them for free.

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