Most stock investors are motivated by a belief in the continued prosperity of American business and a desire to participate directly in the expected growth by being partial owners of these companies. Most experts agree that over the long run, stocks have performed better than most other financial assets. Self-investing in stocks is probably better left to the experienced investor. Stock as Equity Shares of stock represent partial ownership of a corporation and are often referred to as equities. Stocks can appreciate in value as profits are earned and future expectations for growth are positive.
Stocks can also depreciate in value if the company suffers losses or, in the extreme, goes bankrupt.
Dividends may also increase or decrease. The stock market itself also affects the value of stocks. Stocks have no maturity or expiration date, nor are there guarantees to repay your investment or to pay dividends. Shareholders share in the fortunes, good and bad, of the company. Stock values also fluctuate with the general economy, with changes in the industry of which the company is a part, and with perceived changes in the future of the company.