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Is it possible to reduce the risk of investing in the stock market by buying a wide range of stocks and shares?
in Financial Literacy by Diamond (48,997 points) | 17 views

1 Answer

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Yes, to another extent buying a wide range of stocks and shares seem wise as you would have actually diversified, hence higher the chances that if the market is disturbed you may survive or get returns from some of the stocks and shares.

However investing in wide range of stocks and shares may be greatly unfruitful if the companies are not themselves worth owning. Therefore its important to evaluate the potential of the company or companies rather than spreading your wings on many companies which are worthless and even high risk themselves.
by Diamond (38,542 points)

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