Why You Should Invest in Stocks
Why You Should Invest in Stocks
In this lesson you will learn about the advantages stocks have over other investment
vehicles.
There is no shortage of things in which to invest your money. So why choose stocks? Quite
simply, because stocks are your best bet. Since its inception, the stock market has
consistently delivered the best overall returns when compared with the returns of investments
like real estate. Since the purpose of investing is to watch your money grow, the logical
choice is to place your money where it has the best chance of doing that.
TIP
Many of the skills you will learn to determine whether stocks are the appropriate
investment vehicle for you will later be the same skills you will use to select
stocks-you will be able to compare stocks' returns, assets, and liabilities with other
available investment options, for example.
There are, however, mitigating circumstances and characteristics that may make other
investment vehicles seem attractive as well. Other investment vehicles you might consider
are …
Bonds
Cash
Mutual funds
When comparing or considering these vehicles as investment options, be aware that as their
methods of producing returns differ, so, too, do the individual risks associated with each
