When constructing an investment portfolio, you will probably want to consider placing a portion of your assets in equity securities. Over the long-term, equities can potentially reward investors with higher returns than other asset classes, although they also carry a greater degree of risk and may not be suitable for all investors. A U.S. Bancorp Piper Jaffray Investment Executive can discuss with you the risks and benefits of owning stocks and help you determine whether equities are suitable for your portfolio.
Common stocks represent shares of ownership of a corporation.
The value of these shares can rise or fall based on investor expectations of future earnings and dividends. The relationship of the market price to a company's actual or expected earnings, called the price-earnings ratio, is a measure of these expectations. Market values are also affected by forecasts of business activity in general and investor psychology based on the current business and economic environment. Growth stocks offer the potential for significant capital appreciation. Growth stocks may not pay dividends since earnings are generally reinvested to finance future growth.