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Lesson 2. Why You Should Invest in Stocks > Stocks vs. Cash
Stocks vs. Cash
Cash, in financial terms, refers to any type of investment that is extremely liquid. A money market account, for example, is considered cash because the account holder can withdraw his or her money with relative ease, including drawing on the account with a personal check. Cash can also refer to the money in your checking and savings accounts or the money hidden under your mattress.
Tip
Investing in stocks will almost definitely provide a higher return than allowing your money to remain in cash or investing it in a cash investment. However, cash has a degree of liquidity not offered by stock.
