The Pros and Cons of Investing in StocksBy The Smart Investor • August 10, 2026Although both stocks and real estate investment trusts (REITs) are listed on the stock market, there are differences between the two. Stocks, on the other hand, can be any kind of business, ranging from banks to technology to supermarkets. Therefore, by purchasing a stock, you are essentially buying a part-ownership of the underlying business. With that, shareholders are entitled to benefits such as Stocks are shares of ownership of a company. Therefore, by purchasing a stock, you are essentially buying a part-ownership of the underlying business.