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    Stock market investments

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    You work for a large investment firm and recently wrote a position article on your firm's approach to investing for the small investor, titled "Investing Is for the Little Guy." The article now appears on your company's Web site. It has, interestingly enough, generated e-mail responses from potential clients, and your firm is asking you to address some of their questions for a Frequently Asked Questions (FAQ) segment that will be posted to the Web site soon.

    Specifically, some of the respondents have compared investing in the stock market as a no-win situation, and only the institutional investors can win. These respondents would like a response that further clarifies your firm's position regarding risk in light of these types of statements.

    Discuss the following with at least four references.

    Research stock market investments using your text, course materials, and Web resources.

    What disadvantages do small investors face when investing in the stock market?
    What advantages are presented to these small investors?

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    https://brainmass.com/business/investments-in-securities/451470

    Solution Preview

    Research stock market investments using your text, course materials, and Web resources.

    What disadvantages do small investors face when investing in the stock market?
    The disadvantages that small investors face when investing in the stock market are that companies whose investment small investors hold suddenly collapse. The investments of the small investor are snatched away. In addition, there may be unethical stockbrokers who may rob small investors by diverting money or stock to the detriment of the small investor. Sudden crashes in share prices have been known to drive several small investors to suicide. There is a huge risk in stock markets and such a risk may crush the small ...

    Solution Summary

    Stock market investments is discussed very comprehensively in this explanation..

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