What is one of the biggest risks associated with common stock ownership?
There is no guarantee that an investor will ever receive any or all of the money back for the shares of stock purchased. For example, during the market downturn during 2000 and 2001, the price of some technology stocks declined from over $100 to less than $10 per share. Investors could hold on to those stocks until the prices increase beyond the original purchase price. However, there is no guarantee that the stock will again reach the higher price. 4.Both corporations and consumers make choices about dividends. What are those choices? When a corporation has a profitable quarter, the profit can be reinvested back into the company for research, development, innovations, or other needs. In this case, none of the profit would be shared with the stockholders in the form of dividends. Other companies might pay dividends consistently (such as utility companies, for example), most of the time, occasionally, or never. Although determined by the board of directors, the choice of whether or not
