Question

What is one disadvantage of buying stocks?

A. Stocks are private and difficult to purchase.
B. Stocks are a high-risk investment.
C. Stocks are low-risk but have a low rate of return.
D. Stocks don't pay out until you reach a specific age.
SUBMIT

Answer 1

B. Stocks are a high-risk investment.

Step-by-step explanation:

B. Stocks are a high-risk investment. This is one disadvantage of buying stocks. The stock market can be volatile, and there is always a risk of losing money, especially if an investor invests in a single company or industry and that company or industry experiences significant losses or downturns. It is important to have a diversified portfolio to mitigate some of this risk.