Caveat Emptor -- Let The Buyer Beware
There's a lot to think about before you buy stock in a company. Consider the following points:
  1. When you buy stock in a company, your investment is tied to the fortunes of that company.
  2. If the company goes bankrupt, you lose all your money.
  3. To find a company with a solid business plan and solid future you have to take the time to do research.
  4. Since you should ideally diversify your portfolio among several stocks, and bonds and cash instruments too, you'll have to do a lot of research.
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    For these reasons, many investors prefer mutual funds.    
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