Historically, the stock market has provided investors significant and positive returns over the long term.
Few investors purchase shares in each company they follow.
Risk varies depending upon the strategy followed, and it is important for an investor to understand fully the risk of each strategy he or she might utilize. In addition, there are a number of differences between an investment in common stock and an investment in options that are important to understand. Unlike common stock, an option has a limited life. Common stock can be held indefinitely in the hope that its value may increase, while every option has an expiration date. If an option is not closed out or exercised prior to its expiration date, it ceases to exist as a financial instrument.