Galacia Rolls Sep 18 8:48am Hello Class, With stocks, you can buy a part of the corporation, which sounds awesome. And you can only lose your investment if the corporation goes bankrupt (which is still bad). I mostly hear from my friends about dividend stocks because they pay you dividends every quarter. I think that is awesome, but to receive a significant amount of dividends, you need to invest a significant amount of capital in the same stock. Stocks are liquid too, which means you can buy or sell them easily. There are stocks that are more volatile than others, which means that they tend to increase in price and decrease rapidly. These types of stocks are riskier than other stocks whose volatility is lower. I have started to invest in a few popular mutual funds in Robinhood, but I am hesitant to invest in stocks mainly because the mutual funds diversify my investment while stocks do not diversify my investment.

Fundamentals Of Financial Management, Concise Edition (mindtap Course List)
10th Edition
ISBN:9781337902571
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Eugene F. Brigham, Joel F. Houston
Chapter9: Stocks And Their Valuation
Section: Chapter Questions
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Business 123 Introduction to Investments

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Galacia Rolls
Sep 18 8:48am
Hello Class,
With stocks, you can buy a part of the corporation, which sounds
awesome. And you can only lose your investment if the
corporation goes bankrupt (which is still bad). I mostly hear from
my friends about dividend stocks because they pay you dividends
every quarter. I think that is awesome, but to receive a significant
amount of dividends, you need to invest a significant amount of
capital in the same stock. Stocks are liquid too, which means you
can buy or sell them easily. There are stocks that are more volatile
than others, which means that they tend to increase in price and
decrease rapidly. These types of stocks are riskier than other
stocks whose volatility is lower. I have started to invest in a few
popular mutual funds in Robinhood, but I am hesitant to invest in
stocks mainly because the mutual funds diversify my investment
while stocks do not diversify my investment.
Transcribed Image Text:Galacia Rolls Sep 18 8:48am Hello Class, With stocks, you can buy a part of the corporation, which sounds awesome. And you can only lose your investment if the corporation goes bankrupt (which is still bad). I mostly hear from my friends about dividend stocks because they pay you dividends every quarter. I think that is awesome, but to receive a significant amount of dividends, you need to invest a significant amount of capital in the same stock. Stocks are liquid too, which means you can buy or sell them easily. There are stocks that are more volatile than others, which means that they tend to increase in price and decrease rapidly. These types of stocks are riskier than other stocks whose volatility is lower. I have started to invest in a few popular mutual funds in Robinhood, but I am hesitant to invest in stocks mainly because the mutual funds diversify my investment while stocks do not diversify my investment.
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