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    Stocks have the pros of companies paying shareholders money but the con that if a company does poorly, the investment may not provide any return. Bonds often pay high interest rates but have high initial costs and fees that reduce returns. Mutual funds are diverse, allow small or large investments and are professionally managed, but have fees, capital gains are taxed, and earnings are hard to calculate.

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    Stocks have the pros of companies paying shareholders money but the con that if a company does poorly, the investment may not provide any return. Bonds often pay high interest rates but have high initial costs and fees that reduce returns. Mutual funds are diverse, allow small or large investments and are professionally managed, but have fees, capital gains are taxed, and earnings are hard to calculate.

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    9 views1 page

    Pros and Cons

    Uploaded by

    api-407156844
    Stocks have the pros of companies paying shareholders money but the con that if a company does poorly, the investment may not provide any return. Bonds often pay high interest rates but have high initial costs and fees that reduce returns. Mutual funds are diverse, allow small or large investments and are professionally managed, but have fees, capital gains are taxed, and earnings are hard to calculate.

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    of 1

    PROS AND CONS OF

    STOCKS, BONDS, AND


    MUTUAL FUNDS

    BY:BURTON HESS

    PROS OF  STOCKS


    A pro of owing a stock is that the company pays real

    money to the sharehoders.

    CONS OF STOCKS
    The money you spend on a stock is not insured so is the

    company does poorly you may not get any return at all,

    PROS OF BONDS
    Bonds often times pay back very large interest rates

    which generate large returns.

    CONS OF BONDS
    Bonds often times cost much more in the first place and

    bonds come with fees that have to be paid which takes

    away from your returns.

    PROS OF  MUTUAL FUNDS


    Mutual funds have many pros. They are very diverse, you

    can invest small or big, they are convenient to manage,

    and often times professionals are willing to help with

    them.

    CONS OF MUTUAL FUNDS


    There are a few cons of having a mutual fund, They come

    with fees, capital gains are taxed, and it is hard to

    calculate possible earrings.

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