Lorena Hagle Oct 14 1:17pm Hello Dear Peers, Yes, sure.. Investing in stocks can be exciting and offer attractive advantages, such as potential capital gains from a stock's increasing value over time, as well as potential income from dividends paid by the company, usually on a quarterly basis. Additionally, there are lower tax rates on long-term capital gains. Liquidity and limited legal liabilities are other benefits, and, hey! owning even a small portion of a large company can be captivating. On the downside, the main disadvantage of investing in stocks is the Risk of losing the entire investment if the company goes bankrupt; common stockholders are the last to be paid in such cases, unless they are preferred stockholders (bondholders and creditors are given preference). I believe that stocks are more suitable for Type A personalities. As a Type B personality, stocks are not really my cup of tea (and I only drink herbal tea). However, as our great instructor says, investments are like a buffet, and due to my Latina part, I like my food somewhat spicy (used to be very spicy); unfortunately, at my age, it can be kind of heavy (and painful) for my digestive system,... but a little bit of spiciness on good selective meals might be worth it → I find advising someone about stocks a bit intimidating due to lack of experience.
Lorena Hagle Oct 14 1:17pm Hello Dear Peers, Yes, sure.. Investing in stocks can be exciting and offer attractive advantages, such as potential capital gains from a stock's increasing value over time, as well as potential income from dividends paid by the company, usually on a quarterly basis. Additionally, there are lower tax rates on long-term capital gains. Liquidity and limited legal liabilities are other benefits, and, hey! owning even a small portion of a large company can be captivating. On the downside, the main disadvantage of investing in stocks is the Risk of losing the entire investment if the company goes bankrupt; common stockholders are the last to be paid in such cases, unless they are preferred stockholders (bondholders and creditors are given preference). I believe that stocks are more suitable for Type A personalities. As a Type B personality, stocks are not really my cup of tea (and I only drink herbal tea). However, as our great instructor says, investments are like a buffet, and due to my Latina part, I like my food somewhat spicy (used to be very spicy); unfortunately, at my age, it can be kind of heavy (and painful) for my digestive system,... but a little bit of spiciness on good selective meals might be worth it → I find advising someone about stocks a bit intimidating due to lack of experience.
Fundamentals of Financial Management (MindTap Course List)
15th Edition
ISBN:9781337395250
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Eugene F. Brigham, Joel F. Houston
Chapter8: Risk And Rates Of Return
Section: Chapter Questions
Problem 8TCL
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Business 123 Introduction to Investments
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Transcribed Image Text:Lorena Hagle
Oct 14 1:17pm
Hello Dear Peers,
Yes, sure.. Investing in stocks can be exciting and offer attractive
advantages, such as potential capital gains from a stock's
increasing value over time, as well as potential income from
dividends paid by the company, usually on a quarterly basis.
Additionally, there are lower tax rates on long-term capital gains.
Liquidity and limited legal liabilities are other benefits, and, hey!
owning even a small portion of a large company can be
captivating. On the downside, the main disadvantage of investing
in stocks is the Risk of losing the entire investment if the company
goes bankrupt; common stockholders are the last to be paid in
such cases, unless they are preferred stockholders (bondholders
and creditors are given preference). I believe that stocks are more
suitable for Type A personalities. As a Type B personality, stocks
are not really my cup of tea (and I only drink herbal tea). However,
as our great instructor says, investments are like a buffet, and due
to my Latina part, I like my food somewhat spicy (used to be very
spicy); unfortunately, at my age, it can be kind of heavy (and
painful) for my digestive system,... but a little bit of spiciness on
good selective meals might be worth it →
I find advising someone about stocks a bit intimidating due to lack
of experience.
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