Not everyone invests in stocks because it involves risk and requires knowledge and understanding of the market. Some people may prefer safer investments or simply lack the financial means to invest in stocks.
It is called asset allocation.
if the chances of winning the lottery are 1 in a 1000 and you buy 1000 tickets you have a very very good chance of winning the lottery. with CVD there aren't 1000 risk factors
The chief risk associated with stocks is the Market Risk. Let us say you buy 100 stocks of XYZ limited at $10 per share. Which means you have invested $1000. After one week, assuming the market collapses and XYZ declares some problems in management. This would pull down the value of the stock and it would probably be trading at $2 or $3 per share. which means you have lost around 70% of your investment. This is the risk associated with investing in stocks.
No, the risk of a portfolio cannot be reduced to zero by simply increasing the number of stocks. While diversification can lower unsystematic risk (the risk specific to individual stocks), it cannot eliminate systematic risk, which affects all stocks due to market-wide factors. Therefore, while adding more stocks can help mitigate some risks, it does not completely eliminate them.
A person who invests money is typically referred to as an investor. Investors allocate their capital into various assets, such as stocks, bonds, real estate, or mutual funds, with the expectation of generating a return over time. Their investment decisions are often guided by research, market trends, and individual financial goals. Successful investing requires a mix of strategy, risk management, and a long-term perspective.
They're are American penny stocks basically. They are high risk but can also bring high rewards. We're talking 100%-1000% sometimes more.
Investment in high risk stocks is a potentially lucrative and dangerous undertaking. These volatile, "high flyer" stocks move up and down the market dramatically. Examples of such stocks currently include CARBO Ceramics and Priceline.
At the moment they are as stocks are volatile as the price is increasing and decreasing. however, long term wise most stocks are good investments
At the moment they are as stocks are volatile as the price is increasing and decreasing. however, long term wise most stocks are good investments
The stocks that produce the highest rate of return but are less risky would be to jump on the boat of an established, yet still rising and potentially great company. Some other characteristics to look for is low debt and responsible spending as well as revenue.
you can get good information on penny stocks from places that sell and trade the stocks.. a broker can help you with any questions and you are always taking a risk..