Question

why is putting money in stock market a risk?

Answer 1

Because you cannot predict the odds if you will win or lose thus making it a risk

Answer 2

Risk- loss.

Answer 3

Thank You!! Could i also say that the banks crashed once during the Great Depression and many people don't trust banks anymore because of that?? @Bilin-Joseph

Answer 4

Irrelevant. The FDIC was formed removing this distrust.

Answer 5

Huh? Why? @FutureMathProfessor

Answer 6

You can put up to $250,000 into a bank account and it will be guaranteed to be always yours (except for debt, etc.)

Answer 7

Oh Ok, makes sense. I tough i heard that somewhere. Thanks:D

Answer 8

Anytime babe :)

Answer 9

Can you explain the whole stock market thing to me?? I'm a little confused... @FutureMathProfessor

Answer 10

The stock market is a collection of businesses who have decided to go public. When you put money in, you OWN part of that company. Then you wait, and wait, and wait, till however long. When the business you invested in is doing good, their company value will go up, which means your investment will go up, then you can take your money out, which will be more money than you put in!

It's free money!

Answer 11

And @Bilin-Joseph what do you mean as win or lose? win or lose what??

Answer 12

Thank you sooo much!!! @FutureMathProfessor Makes a lot of more sense!!!

Answer 13

Anytime babe :)

Answer 14

Thanks again guys for the help!! You guys are the best!! @Bilin-Joseph @FutureMathProfessor

Answer 15

Anytime babe :) Maybe you should give me the medal :)

Answer 16

Sorry i already gave @Bilin-Joseph the medal, since he answered first. Next time, next time. :D

Answer 17

ahemm... the FDIC only insures banks afaik =P, no trading houses

Answer 18

Remove it from him and give it to me

Answer 19

the stock market is pretty much a "legalized" gambling house, so just like in Vegas, when you put your money in the bids, they may come with big returns or with zeros
you either get 3 lemons or no soup for you :P
thus is a risk, since it's a gamble

Answer 20

Why would i do that? @FutureMathProfessor

Answer 21

Because yo'ure hot

Answer 22

yea the stock market isnt free money why do you think everything went so wrong in 1929 the great depression, its gambling it can be a risk because you can lose your money, even if you can get more money theres still that small chance it could go wrong making it a risk

Answer 23

It is free money though. Well, over the millions of dollars I've put into it I've never lost anything.

Answer 24

That's you, but what if there's a chance something goes wrong like in the great depression, thus making your argument invalid, making the stock market a risk

Answer 25

Nice point!! @Bilin-Joseph

Answer 26

hehee... tis free for the receiver, not the non-receiver whose money went bust

Answer 27

sorta like free lunches, I mean, one can say you didn't pay for it, doesn't mean noone cooked it or grew on trees

Answer 28

Sooo is it free money or not?? @Bilin-Joseph @jdoe0001 @FutureMathProfessor

Answer 29

Depends if you're smart

Answer 30

To the smart nvesteri it is. Let's put it that way.

Answer 31

of course not, the money is pooled in from many folks BETTING on the stocks, the ones who win the BETS get the OTHERS money who did not

Answer 32

Mutual fund

Answer 33

I mean, the only free money I can think of is the one you print yourself, other than that, is someone else's

Answer 34

Shes not asking about the smart upper quartile shes talking about the total population and general audience making the statement that the stock market is a risk correct in general terms, one persons opinion can only affect so much of the whole census.

Answer 35

Ok guys ttyl Thanks for the clarification!! @Bilin-Joseph

Answer 36

The stock markey is a RISK, use the great depression to back up this statement if needed.