12.2 Why invest in stocks?

There are many reasons to invest in stocks. The following 4 are our favorites;

  1. High long-term yield. 
  2. Easily control your risk, by diversifying your investments.
  3. Low costs (compared to for example purchasing real estate).
  4. Fast conversion investment to cash due to high liquidity in the market.
 

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Entitlement

The majority of investors in shares buy stocks to entitle them to a portion of the company’s profit.

Advantage of investing in stocks

Investing in stocks gives you, on average, a much higher return than simply leaving your money in a savings account. Another advantage of investing in the stock market is that you always have your money at your disposal. 

Risk

Investing comes with risk. There are no guarantees. You will have to do your homework and learn how to invest. In this course we will teach you how to create your investment plan and how to make informed investment decisions.