While stocks can seem mysterious, a stock is simply a portion of business ownership. Purchasing a company’s stock allows you to vote at shareholder meeting while also being eligible to share in any profits that the business may generate.
It’s important to remember that stock value fluctuates on a daily basis, and that not all stocks will make money – some may stay at the value they were at when you purchased them, while others may drop in value, making stock purchasing a trickier option for those that are particularly risk adverse.
It’s a good idea to keep your initial stock purchase at a minimum until you become comfortable with market performance. It’s also a good idea not to invest more than you are willing to lose.
Once you begin to invest, you will have a portfolio. A portfolio represents all of the investments that have been made on your behalf.
Most investors will have a variety of investments in their portfolio, including individual stocks, bonds, and securities.
Your portfolio can also include real property such as real estate, valuable art or jewelry, or any valuable item. Your portfolio is always tied to your investment goals that should be determined before you begin to invest.