Investment in equity securities, or the purchase of stock within a corporation, translates to part ownership of that corporation. A stockholder can benefit from the corporation’s growth which will likely result in an increased value over the original stock purchase price. Time permitting, an invest-and-hold strategy, where the stockholder rides the rise and fall of the stock price, can prove to be a profitable investment for long-term investors.

Stock prices and returns can vary significantly in shorter periods of time — day to day, month to month or even year to year. True wealth-building potential has historically been built through long-term investments in stocks and stock-based mutual funds.

If you have a long-term time horizon, stocks and stock-based mutual funds have historically offered investors true wealth-building potential.