You could lose your entire investment.If a company does poorly, investors will sell, sending the stock price plummeting. When you sell, you will lose your initial investment. If you can’t afford to lose your initial investment, then you should buy bonds. You get an income tax break if you lose money on your stock loss. You also have to pay capital gains taxes if you make money.

Leave a Reply

Your email address will not be published. Required fields are marked *