Before investing in common stocks, one should be aware of both their advantages and disadvantages. One advantage is their high potential return on the (47) amount invested. The average price of all stocks sold on the major stock (48) can be expected to rise considerably over an (49) period of time; common stocks offer an (50) hedge (防御措施) against long-term inflation. Additionally, there are tax advantages to invest in common stocks. The income on the capital gain of a common stock held for more than a year is taxed at a much lower rate than ordinary income. The big disadvantage of common stocks is the great risk of price (51) that must be accepted in return for the chance to realize large gains. Both individual stocks and the market in general (52) to sudden and steep price falling. These are difficult for the small investors to (53) . Another disadvantage is during periods of high inflation the attractiveness of other forms of investment, such as time (54) , mortgages (抵押), and bonds, reduce buyer interest in common stocks, resulting in price decrease. Thus, during these times the value of common stocks as a hedge against inflation is reduced. Often, too, the current rate of return on common stocks is much lower than the return on the other less risky forms of investment. Although these disadvantages cannot be (55) , they should not blind investors to the advantages of the (56) chosen common stocks.

• A) cautiouslyF) decline K) territory
• B) extraordinaryG) attractive L) plentifully
• C) depositsH) exchanges M) deficiency
• D) anticipateI) original N) extensive
• E) inclineJ) ignored O) demonstrate