Investing in the stock market has proved to be a good choice in terms of returns on your investment and building up your portfolio to reach your goals. Investing in stocks means becoming a shareholder in a company. You profit by selling shares when the company’s stock value rises or by holding it while receiving dividends.
Stocks offer greater liquidity and diversification. You can buy individual stocks, mutual funds, or exchange-traded funds (ETFs). On average, stocks have returned 8–12 percent per year over the long term. However, keep in mind that economic conditions and emotional decisions can impact returns. Optimism and excitement are the dominant emotions in the market today, so fear, doom, and gloom may return at some point, dashing your stock values significantly.
