When being new to investing you need to know going in that there are numerous risks. Business Risk: You purchase a stake in a corporation when you buy a stock. You are lending money to a corporation by purchasing a bond. The company must continue to operate in order to receive returns on both of these investments. Common stockholders are the last to receive a payout if a firm declares bankruptcy and liquidates its assets. If there are assets, preferred stockholders will be compensated after the bondholders of the company. Common stockholders receive whatever is left over, which could be nothing. Make sure that you consider the financial stability of the insurance firm issuing the annuity into account when buying one. You want to confirm that the business will endure and be financially stable. Volatility Risk: Companies' stock prices can change even when they are not in danger of falling apart. For instance, large firm stocks have often experienced a l...