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serious [3.7K]
3 years ago
9

What are the advantages and disadvantages of common stocks​

Business
1 answer:
andrey2020 [161]3 years ago
5 0

Advantages:

  • You can invest in companies with limited liability.
  • Common stocks offer a higher earning potential.
  • You can easily purchase common stock on virtually any trading platform.
  • Common stocks can provide dividends.
  • You’ll get to take advantage of a growing economy.

Disadvantages:

  • You are the last person to get paid during a company liquidation.
  • You don’t have much control over your investment.
  • Companies are not required to pay dividends on common stocks.
  • It can take time to generate significant gains.
  • You will face high levels of professional competition when investing in common stocks.

Hopes this helps :)

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