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1)Price may go up or some tax reduction and no tax until selling.

2)Not cash so less temptation to spend the money

Bad

1) stock price may go down

2)way over priced so it is trading more like a legal ponzi pyramid scheme (ie Baseball card)

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Q: What are two benefits and two risks of buying stocks?
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What is the current price per share of two stocks?

Hi Jasmine


What are two main ways that an investor can get a return from stocks?

money back


What are two benefits and two risk of buying stock?

The list of risks and benefits is of course much longer, but 2 examples are: Benefit 1: there is no limit to the extent in which stock may increase in value, even in a short period of time. Risk 1: there is also no limit to the extent in which stock may DEcrease in value, even in a short period of time. Benefit 2: stock may yield a dividend that may well surpass any level of interest you might make today on a savings account. Risk 2: the company issuing the stock may in any year decide not to pay out any dividend at all.


Who regulates stocks and bonds?

There is one government agency - Security and Exchange Commission (SEC) and two Self Regulating Organizations (SROs) who mandate or administer regulations for stocks and bonds: NASD (They recently changed the name to FINRA) and MSRB. * SEC regulates stocks, treasury securities, and municipal bonds * FINRA administers regulations by SEC for Over The Counter stocks (e.g., the stocks traded on NASDQ). * MSRB administers regulations by SEC in relations to Municipal Stocks. * Corporate bonds and notes are hardly regulated, since thy mostly trade in Over The Counter markets.


Would you get the largest reduction in risk by spreading your portfolio across two stocks?

Your risk is reduced by investing in stocks with low correlation (prices do not move in sync). This is the basis of modern portfolio theory (look it up at investopedia).

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