Are there risks with buying Stocks?

Answer:
Yes. Investing in the stock market is done at your own risk.

The market could rise or fall and with it, your investment could rise or fall as well. While banks are FDIC insured, the stock market is not. Anytime you buy a stock, you are assuming a risk. You are betting that the price will go up and if it does, you will be rewarded with a higher profit. However, if the price goes down, you will end up losing money if you sell it at the lower price.

There are several different categories of risk including market busts such as when the economy goes bad for a period of time, inflation where value can’t keep up with rising costs, market value risks where investors are pursuing the latest craze and ignoring other good stocks in favor of those that are hot at the moment, and not investing aggressively enough to meet your financial goals.

When investing in stocks, it’s important to determine how much risk you are willing to take and tailor your goals to take risk into account.


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