Owning stock in the good and the bad times
Would you consider those that invest in stocks to be out of their mind?
Investors provide companies with important funding, but don’t get any guaranty in return. There is no guaranty on profit, and if things go south, investors can lose all of their cash. This is the primary reason stocks are considered risk capital.
TINA: “There Is No Alternative” — Why Stocks Still Dominate Long-Term Investing
For those looking to invest for the first time, it's essential to look at what happens if you put your money in a regular savings account. A lot of people do this for fear of losing all their money. However, most of the interest you earn is lost due to inflation.