Stocks
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What are some drawbacks of buying individual stocks?
Stocks are risky. Diversification helps to lessen the risks, but it is difficult for an individual investor
to buy enough individual stocks to be adequately diversified.
Buying stocks can be extremely time-consuming, especially if you use a discount broker who doesn't
provide you with research and investment advice. You'll have to spend a lot of time researching
companies, reading financial statements and annual reports, tracking performance and so on.
Buying stocks can be expensive. You will pay brokers commissions, or transaction fees if you use a
discount broker, for every purchase or sale.