What are the pros and cons of investing in stocks?

The post Pros and Cons of Investing in Stocks appeared first on SmartReads by SmartAsset. Investing in stocks refers to the practice of purchasing shares of a company with the anticipation that these ownership stakes will appreciate in value over time. However, like any investment, it carries inherent risks and uncertainties.

What are the downsides of investing in stocks?

Another downside of investing in stocks is that you can lose much, or even all, of your money if you don't know what you're doing. There are lots of ways to lose money in stocks, and lots of common investing mistakes you might make. Here are just a few:

What are the advantages of investing in stocks?

Here are five common advantages of stock investments to keep in mind: One of the primary advantages of investing in stocks is the potential for your portfolio to grow in tandem with the economy. Stocks represent ownership in companies, and as these businesses expand and become more profitable, the value of your shares can increase.