What is one disadvantage of buying stocks?

A. Stocks don't pay out until you reach a specific age.
B. Stocks are a high-risk investment.
C. Stocks are private and difficult to purchase.
D. Stocks are low-risk but have a low rate of return.

Question

12-06-2024
Business

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What is one disadvantage of buying stocks?

A. Stocks don't pay out until you reach a specific age.
B. Stocks are a high-risk investment.
C. Stocks are private and difficult to purchase.
D. Stocks are low-risk but have a low rate of return.

Sagot :

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Final answer:

Stocks present a high-risk investment opportunity due to their fluctuating nature, despite offering potentially high returns.

Explanation:

One disadvantage of buying stocks is that they are a high-risk investment. Stocks have the potential for high returns but also come with a high level of risk, especially in the short run, making them volatile investments.

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Final answer:

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