Question

The bottom line on investing in individual stocks is: _______________ on average over lengthy periods of time; ________________, especially in the short run; _______________, since stock does need to be sold to turn gains into spendable money.

Answer 1

Answer:

high rate of return , high risk , moderate liquidity

Explanation:

The bottom line on investing in individual stocks is: high rate of return on average over lengthy periods of time; high risk, especially in the short run; moderate liquidity , since stock does need to be sold to turn gains into spendable money.

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Answer 2

The bottom line on investing in individual stocks is: high rate of return on average over lengthy periods of time; high risk, especially in the short run; moderate liquidity, since stock does need to be sold to turn gains into spendable money.

Explanation:

• A stock is a type of investment that represents an ownership share in a company]
• One way in which shareholders make a return on their investment is to sell stock at a higher valuation than was bought. If a company loses, and its shares fall in value, it will lose a part or all of its investment when its assets are sold..
• A second way of income is to dividends which are paid on a quarterly basis per share from the earnings of a company. It is a way to repay shareholders — which own the company itself — for investments.
• In the case of common stocks, the benefit and risk ratio are high. If the price for a particular product is high, the return would also be high. Alternatively, the potential return is also small if the risk is minimal. It is an indirect function that depends on the government's decision. The sales from common stocks are not taxable in certain countries. The income you receive from bonds or savings is also exempt from taxes.
• Since traders and investors sell the stock on the market, various individuals assign different values to one stock. And the stock price is extremely unpredictable.The return on share investments is unpredictable, as the value depends on various variables, including corporate profits, taxation, industrial variables or macroeconomic factors.
• If the company goes bankrupt, after they pay the business to preferred shareholders, you will get some portion of the asset. There is a great risk that you will lose everything when it is bankrupt. The explanation is that inventory price will rise to zero. And if nothing remains after the preferred shareholders are compensated, you will get nothing, because nothing remains.

To know more

what are shares in business? - Brainly.in

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