When buying a companys stock, what return is guaranteed?
On One Hand: No Guarantee of ReturnWhen you buy a company’s stock, there is no guarantee of a return on your investment. Investors need to understand the risks involved and do the research necessary to make good investment decisions. If the company performs well, you will see a return on your investment; if the company performs poorly, you could loose some or all of your money.On the Other: You Can Make Money From StockSome people make a lot of money from stock. To be a successful investor, you must learn how to analyze potential investments to determine which ones are most likely to pay off. It is also a matter of patience; it may take years to realize a return on a stock investment.Bottom LineYou are not guaranteed any return on stock investments. If you plan to invest in stocks, you must learn how to analyze financial statements, read financial reports, and interpret market trends and economic indicators.
