answersLogoWhite

0


Best Answer

A stockholder owns part of a company. The price he paid for the stock has little bearing on its value, which depends on the value of the company or on the profits it makes. A stock may either increase in value, or decrease, and if a company becomes insolvent, the value of the stock could fall, even to zero.

Some forms of stock (including preferred stock) may pay dividends, which can provide profits without having to sell the stock.

User Avatar

Wiki User

13y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: What is the Risk of being a stockholder?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

Benefit of being a stockholder?

Risk of being a stockholder: Stockholders can lose their money if the company goes bankrupt. Benefit of being a stockholder: Stockholders share in the company's profits. Power of a stockholder: Stockholders can vote for the members of the board of director


What is one of the risk of being a stockholder?

Stockolders are not guaranteed a return on their investments.


Which investor incurs the greatest risk?

preferred stockholder


What is one of the risks of being a stockholder?

Stockolders are not guaranteed a return on their investments.


What was a benefit of being stockholder in a corporation?

stockholders are part-owners of the corporation...


What was a benefit of being a stockholder in corporations?

stockholders are part-owners of the corporation...


What is the plural possessive for the word Stockholder?

The singular possessive form for stockholder is stockholder's.


What was the benefit of being a stockholder in a corporation?

The benefit of being a stockholder in a corporation is primarily the potential for financial gain. As a stockholder, you have the opportunity to earn dividends from the company's profits and increase the value of your investment through capital appreciation. Additionally, you may have the right to vote on important company matters and have a say in shaping corporate policies and decisions.


Stockholder in financing?

what is the differentation between stockholder,stakeholder and shareholder?


When was Jessica Stockholder born?

Jessica Stockholder was born in 1959.


What has the author Jessica Stockholder written?

Jessica Stockholder has written: 'Jessica Stockholder: January 29-March 3, 1991' 'Jessica Stockholder' -- subject(s): Exhibitions, Assemblage (Art), Installations (Art)


What kind of stockholder is paid a dividend first?

A preferred stockholder is paid first.