Owning stock also exposes the shareholders to the risks that the company faces. If the business is reported to have financial problems, legal problems or other issues, its stock is likely to be affected, fall and consequently, also affect all investors in the company.

An individual who is thinking about investing in the stock market should recognize that gains generally occur over the longterm. Short-term results are not always guaranteed, as negative economic or company news can quickly wipe out any gains. This means that an individual must be patient in waiting for the investment to pay off.

This patience extends to market timing in the case of short-term traders, who aim to move in and out of the market based on what they feel is the most appropriate time to do so. The problem with this approach is the assumption that the market can be consistently predicted – a condition that most financial advisors believe would be impossible.

Discipline and flexibility are two other traits needed by individuals who decide to invest in the stock market. Market stability is not guaranteed, and there will be periods when the market will be volatile. This will be most notable when a major event occurs such as the September 2001 terrorist attacks in the US, and the havoc caused by recent hurricanes Katrina and Rita, which forced the shutdown of major oil refineries in the Gulf of Mexico.

When these situations arise, it can be difficult to predict the direction of the stock market due to resulting fluctuations, making it necessary for shareholders to remain disciplined with investment strategy but flexible enough to adjust to the situation.

Investors should also put in some research before deciding which shares to purchase. Among the factors they need to know are the history of the company; the company's parent, subsidiaries and other affiliates; earnings movement; management structure and expansion plans. These would give the investor a good idea of how stable a company is and help project the company's direction and future.

Having an interest in a company through shares of stock thus poses both risks and rewards. However, the stock market may not be an ideal investment vehicle for individuals who don't have flexibility, patience, discipline and enough diligence to conduct research.

Further information on owning shares can be found on sites such as Finance and Investments Dot Info.