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Stocks

The riskiest asset class in which you can invest, stocks represent an ownership or equity position in a corporation. A stockholder lays claim to a proportionate share in the corporation’s assets and profits and is often paid dividends when the company makes money. Stock share prices will rise as the corporation grows and there is greater demand for its stocks. The idea is to buy stock when the company is still small, hold onto it for a number of years while the company grows and becomes financially stronger, and then sell it for a profit once the stock price has risen as a result of new demand.