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The fact that their value can go up and down. If you have shares in stocks, and that company becomes bankrupt, you will lose all the money you put into the shares, however if it becomes a big and successful corporation, you could end up being very wealthy.

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Q: What makes stocks risky?
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Related questions

What is more risky stocks or bonds?

Stocks.


What stock is very risky in modern day America?

risky stocks would be citrix systems, sanmina, aplied micro systems, novell, and mosnter worldwide. as dictated as the 5 most risky stocks by Forbes


Difference between financial risk and return?

In the financial world, more risk equals more return. Less risk equals less return. That is why you see Greece right now paying very high yields on their bonds (it is very risky to invest in a Greek bond right now because they could possibly default). If you buy a basket of 10 risky stocks, and then buy a basket of 10 low-risk stocks, the risky stocks will usually outperform the less risky stocks.


Which is a riskier investment corporate bonds or technology stocks?

Tech Stocks will be generally more volatile and thus considered more risky.


Why are investments considered to be risky?

It depends if the stock marketis good. Because if it drops and you have stocks you loose money.


Do short selling stocks have a higher or lower return rate?

Short selling stocks is risky because there are no guarantees of what the market share will be after the sell. The return rate could be high or low, depending on if the stocks fell as predicted.


Who makes thumbhole stocks for Remington 788 rifles?

stocky stocks


Are stocks of different companies equally risky?

No. Each company as an investment option carries a different level of risk


The Most Risky Stocks?

Some of the most risky stocks on the market are stocks known as otc penny stocks. The otc in this term stands for over the counter. These are a type of stock that is not traded on any index. They are simply traded between all investors involved in these particular types of stocks. Given all of this, you are going to want to carefully consider if this type of stock is right for you at all. It is okay to admit that it might not be. There are plenty of people who would feel uncomfortable trading in the over the counter market, and no one would blame you for feeling this way.


What is better for retirement stocks or bonds?

If you're a long way from retirement, stocks (riskier) is probably better. As you get closer to retirement, high grade, short term bonds (less risky) are better.


What type of stocks should I buy in Canada?

Purchasing stocks is always a risky, and tricky investment. Most first time buyers should contact an investment advisor. Some well known stocks are those of large chains, such as grocery stores and retail stores.


What are some of the stocks that are great for a beginner stock broker and with little risk?

Unfortunately there are no stocks that are risk free. Luckily there are many stocks that are considered "blu chips", they are stable companies, with a usually expensive price, that are less risky. Examples include Microsoft, Google, and General Electric.