From the course: Managing Your Personal Investments

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Investing in stocks

Investing in stocks

From the course: Managing Your Personal Investments

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Investing in stocks

- If you had a choice to invest in real estate, gold, bonds, or stocks, which option, historically, has given the best return? It's stocks, hands down. Through thick and thin, the U.S. stock market has returned five percent. Even after depression, dot com bubbles, economic meltdowns, stocks still have the best returns over time of all asset classes. So let's look at stocks and see why they have traditionally been such good investments. First, let's start with what a stock is. Stocks, also called equities or shares, are an ownership stake in a company. When you buy a share, you actually become an owner of a small percentage of a company. There's two types of stock you can buy. First are common shares. These are, by far, the most widely used form of stocks. They give the shareholder the right to vote at shareholder meetings, and a right to a share of the company's profits, if the company offers dividend payments.…

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