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Saxo Group
The stock market offers several benefits, attracting millions of investors worldwide every day. The primary reason people invest in stocks is to make a profit and grow their wealth over time. By investing in stocks, investors aim to capitalize on the growth in the value of their assets. Historically, stocks have provided a positive average annual return that is higher than other asset classes such as bonds and gold. For example, the S&P 500, which tracks the stock performance of 500 major publicly listed companies in the United States, has achieved a compound average annual growth rate of 10.7% over the past 30 years.
Additional reasons why people invest in stocks include: