when you invest you make choices about what to do with your financial assets your investment value might rise or fall because of market conditions or corporate decisions such as whether to expand into a new area of business or merge with another company 7
historically stocks have outperformed most other investments over the long run 1the bottom linea stock represents fractional ownership of equity in an organization it is different from a bond which operates like a loan made by creditors to the company in return for periodic payments a company issues stock to raise capital from investors for new projects or to expand its business operations the type of stock common or preferred held by a shareholder determines the rights and benefits of ownership 