Risk of Stocks: The investor owns a share of the company so if the company goes through rough times the investor will lose money. Even if the company does everything right (which is rarely the case), major national events, economic indicators (inflation, etc), and decisions (and even casual remarks) by the Federal Reserve board can effect the entire market. There is the risk that the company could go out of business entirely. In some cases, these companies increase their dividends in their closing years (by ceasing to invest in the company) so the investors get some return, but in other cases, the investors are left with a total loss.