12.2 Why invest in stocks?
There are many reasons to invest in stocks. The following 4 are our favorites;
- High long-term yield.
- Easily control your risk, by diversifying your investments.
- Low costs (compared to for example purchasing real estate).
- 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