asked 8.6k views
1 vote
Investors in the stock market are always guaranteed they will

earn a profit.
O True
False

asked
User Jon Chu
by
7.4k points

1 Answer

2 votes

Final answer:

Investors in the stock market are not always guaranteed a profit due to the volatility and risks involved.


Step-by-step explanation:

No, investors in the stock market are not always guaranteed they will earn a profit. The stock market is volatile and can fluctuate based on various factors such as economic conditions, company performance, and market trends. There is always a risk involved in investing in stocks, and investors can experience losses if the value of their stocks decreases.

For example, let's say an investor purchases shares of a company at a high price, expecting the value to increase. However, if the company faces financial difficulties or if the overall market experiences a downturn, the stock price may drop, resulting in a loss for the investor.

Therefore, it is important for investors to understand the risks and to diversify their portfolios to mitigate potential losses.


Learn more about Stock market investment

answered
User Josh Matthews
by
7.5k points

No related questions found

Welcome to Qamnty — a place to ask, share, and grow together. Join our community and get real answers from real people.

Categories