BASIS OF STOCK MARKET

The stock market is a complicated place for which the investor is not particularly well suited. Stock prices rise and fall for reasons which can be complex. Since the only sure bottom is zero, when you invest, consider adding protection (i.e. stop orders, options, etc.). To avoid another WorldCom, Enron, or even a 2008 type of disaster, be sure the company you’re buying is worth owning. Unless you love risk, you may wish to avoid putting too much of your money in one stock.