 TITLE: Should I Buy Life Insurance or Stocks? CONTENT: How Does Investing in Stocks Work?\n----------------------------------\nWhen you're ready to start investing, you can buy and sell individual stocks on exchanges like Nasdaq and the New York Stock Exchange. Stock prices tend to go up and down—and your investment reacts in kind. Stock investing is riskier than \"safer\" financial products like certificates of deposit or bonds, but the return on investment is historically better over time.\nIf you'd rather not pick individual stocks, you can invest in mutual funds or ETFs instead. Mutual funds are collections of investments that are managed professionally. With a mutual fund, the investor owns small shares across a variety of assets. Certain funds mirror a market index like the S&P 500, for example. ETFs are structured similarly, but they are often managed passively.\nThere's also the option of going with a robo-advisor, which is an automated investment service that takes the reins of your stock investment decisions. Equipped with knowledge of your goals and risk tolerance, a robo-advisor uses computer algorithms to analyze stock performance and make investment decisions for you.\nWhenever you invest, it's important to keep in mind that your investment returns—called capital gains—are taxable. The amount you owe will depend on how long you've owned the stock, as well as your income. Your marital and tax-filing status also come into play. END