When you become a stockholder, you basically own some percentage of the company, which mean : - If the company which you invested in gain no profit, ...
Which is the risk of being a stockholder?
However, stockholders are not personally accountable for the debts and responsibilities of the company, meaning the only financial risk they face is the loss of the money specifically invested in the company.
What are the 4 main risks of investing?
Investment Products\n\n But there are no guarantees of profits when you buy stock, which makes stock one of the most risky investments. If a company doesn't do well or falls out of favor with investors, its stock can fall in price, and investors could lose money.
What are some risks of having stocks?
Since stockholders are able to externalize some of the downside of business risks, they'll tend to be risk-preferring.