Can you lose money investing in stocks?
As with all forms of investing, there’s a risk of losing money when you invest in stocks. When you buy shares of a publicly traded company, they’re valued at a certain amount. It’s entirely possible for that amount to rise or fall. The individual value of a company’s share is determined by many factors, including but not limited to how other investors feel about that company, external market factors, and news/announcements pertaining to that company.
When investing, there’s a chance you could lose the full value of your investment. Keep in mind that in the Stash platform you can never lose more money in the stock market than you invested in the first place.
Even though risk is an inherent part of investing, there are ways to minimize risk. One way to do so is through diversification. If you’d like to learn more about how to diversify your portfolio, check out our guide here.
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