Stocks give investors direct ownership in publicly traded companies and can provide opportunities for long-term growth, income and portfolio diversification.
Disclaimer: Stock prices, dividends and investment returns can rise or fall. Past performance does not guarantee future results, and investors can lose money.
What Can Affect Stock Performance?
Company Earnings
Revenue, profits and future business expectations can significantly influence stock prices.
Economic Conditions
Growth, inflation, employment and consumer activity can affect company performance and markets.
Interest Rates
Changes in interest rates can influence borrowing costs, valuations and investor demand.
Market Sentiment
Investor expectations and market confidence can cause prices to rise or fall quickly.
Industry Trends
Changes in technology, regulation and competition can affect companies within specific sectors.
Company News
Leadership changes, product launches, acquisitions and other events can influence stock prices.
Who May Consider Stocks?
Stocks may be worth considering if you want direct ownership in companies and are comfortable with market fluctuations.
Common Reasons
Building long-term wealth
Seeking capital growth
Generating dividend income
Choosing individual companies
Diversifying a portfolio
Investing for retirement
Gaining exposure to specific industries
Benefits and Things to Consider
Benefits
Long-term growth potential
Direct company ownership
Dividend income may be available
Large selection of companies
Easy to buy and sell through brokerage accounts
Things to Consider
Stock prices can decline significantly
Individual stocks provide less diversification
Company-specific risk can be substantial
Markets can be volatile
Research and ongoing monitoring may be required
Stocks vs. Other Investments
Stocks
Provide direct ownership in individual companies with potential for growth and dividend income.
