answersLogoWhite

0


Want this question answered?

Be notified when an answer is posted

Add your answer:

Earn +20 pts
Q: Why is it better for an investor to own 100 different stocks rather than one?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Continue Learning about Economics

An investor who owns stocks in many different companies would most likely see a rise in the overall value of her portfolio during a?

A bull market


What is the difference between Bear market and Bull market?

A bull phase refers to a economic scenario with booming investor confidence and surplus liquidity as a result of which everyone is buying shares and the prices of stocks are going up. It is termed as a bull phase because there is control/limit on the amount to which the prices go up. It is uncontrollable like the run of a raging bull. A bear phase refers to a economic scenario with diminishing investor confidence and lack of liquidity as a result of which everyone is selling their stocks. the prices of stocks come down crashing.


Difference between Foreign direct investment and foreign institutional investment?

A Foreign Institutional Investor (FII) is a financial investor and invests only in stocks and bonds/. He needs to register with SEBI, can buy/sell several securities on stock market and take out his money/profits any time. A foreign Direct Investor invests directly in a project.He is a partner/promoter in the project and stays invested for a longer period. He does not, unlike FII, invests in many companies.


Till stocks lasts or till stocks last?

till stocks last


What makes stock prices rise?

Stock prices rise when most people want to buy stocks rather than selling it. In reverse, when people are more interested in selling products rather than buying it, the stock price moves down.

Related questions

Are there financial dangers in buying stocks online?

The major danger of buying stocks online is investor incompetence. A broker can generally get a better return than an untrained investor (though there are exceptions).


What is an investor?

An Investor is someone who buys stocks..Eg..I am a investor becasue i by into a stock


An investor by investing in combinations of stocks develops a portfolio?

An investor develops a portfolio by investing in combinations of stocks with the intention of diversifying their investment and reducing risk. This portfolio is typically made up of different types of stocks, such as growth stocks, value stocks, and dividend stocks, as well as stocks from various industries and sectors. The allocation of stocks within the portfolio is based on the investor's risk tolerance, investment goals, and market conditions.


Why would an investor who had not bought stocks on margin have been in a better position to survive the crash than one who had?

;kmkllkm


Which is better bonds or stocks?

If you are a medium to high risk investor then Stocks are good for you If you are a low to medium risk investor then Bonds are good for It all depends on how much of a risk you can take. By investing in stocks you may make profits but you may incur losses as well. But in case of bonds the profits might be less but they are assured.


Does a corporation makes money when an investor buys it stocks?

False


Is this the best source for stock quotes?

In general GOOG is going to be the best value for the casual investor. A broker is mainly useful for managing stocks, rather than quoting.


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

money back


An investor who owns stocks in many different companies would most likely see a rise in the overall value of her portfolio during a?

A bull market


An investor who owns stocks in many different companies would most likely see a rise in the overall value of her portfolio during a .?

A bull market


The disposition effect explains what quirk of investor behavior?

Quickly sell appreciating stocks while hanging on to depreciating stocks


Why is it important to learn how to buy stocks?

Stocks serve as a wonderful investment opportunity for individuals who know what they are doing. By understanding how to buy stocks, the investor can target companies where current stock has potential to increase in price, thus allowing the investor to later sell any current stock holdings for a profit.