common stocks

What are the Risks Associated with Common Stocks?

While common stocks can be lucrative, they also come with risks:
- Market Risk: The value of common stocks can be highly volatile, influenced by market conditions, economic factors, and company performance.
- Dividend Risk: There is no guarantee that a company will pay dividends, and even if it does, the amount can vary.
- Business Risk: If the company performs poorly, the stock price can decline, and in extreme cases, the company might go bankrupt, rendering your investment worthless.

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