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Diversification doesn't reduce the chance of encountering expense losses. Margin investing raises risk of loss and consists of the potential of a pressured sale if account equity drops under essential degrees.
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However, if a stock’s price tag increases after a while, you might take pleasure in money appreciation and gain dividend income from firms that share gains with their proprietors. Dividends can offer a gentle income stream and, if reinvested, may possibly assistance you enhance more time-time period returns.
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