Shareholders Get Paid Last

Another con of stock market investing is that shareholders get paid last. The company’s bills need to be paid first, followed by preferred shareholders and bondholders. This applies to dividends, which are never guaranteed.

If you are concerned or new to investing, you might want to stick with a stock that pays dividends. In addition, consider selling one if its price is slipping down. These are the main disadvantages of share markets in modern times.

Leave a Reply

Your email address will not be published.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