Buy stocks internet nawadays are a form of ownership, they represent participation in a company’s growth. Buying stocks provides independence and the ability to choose how to diversify, in addition to allowing you option strategies to hedge your portfolio or boost overall returns. Generally, investors are given no promises about returns of the initial investment. In fact, the profitability of the investment depends almost entirely upon rising stock price, which, at the most fundamental level, relates directly to the performance and growth (increasing profits) of the company. However, the disadvantage of buying stocks is that they are not guaranteed to return anything to the investor while the coupon payments and principal of bonds are. Thus, the possibility for high returns is greater with stocks but so is the possibility of losing money. For most investors, a combination of stocks and bonds is the best situation. By diversifying your investments and putting some money into both stocks and bonds you ensure some safety while leaving some opportunity for above-average returns in your stock investments. 85465

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