What Are Some Advantages And Disadvantages Of Investing In A Stock Market?

Posted by admin on January 24th, 2010 at 08:47pm

It’s for a school project.
Some advantages and disadvantages of investing in a stock market.
Thank you

3 Comments for What Are Some Advantages And Disadvantages Of Investing In A Stock Market?

1. Joon S | January 24th, 2010 at 9:00 pm

Advantages: You could make tons of money
Disadvantages: You could lose all your money.
Alright, well the advantages are that in the long run the stock market goes up. If you buy all the stocks listed on the DOW, you will make a profit in the very long run almost without a doubt. There is also the chance that you can be good at picking stocks and at timing when you buy the stocks, and make a lot of money very fast.
But the disadvantage is the risk. You will not be able to buy every stock and you won’t be able to hold on to stocks long enough to definitely make money. You may need the cash before the market goes up. You also may be bad at picking stocks and be bad at timing when you buy the stocks. There is a large risk involved.
The alternative would be putting your money in something safer where you will make less money, but won’t have the risk. This would be something like a savings account or a CD or bonds or anything like that.
2. woshaugh | January 24th, 2010 at 9:29 pm

Start reading. There are thousands of websites that talk about investing in stocks. There also thousands of books, many magazines, and articles in the paper every week.
3. bearr41 | January 24th, 2010 at 9:38 pm

Advantage- you make money
disadvantage- you lose money