Final answer:
The most a stock can gain is infinite, or potentially limitless. Stocks can experience significant gains over time, with some companies seeing their stock prices rise exponentially.
Step-by-step explanation:
The most a stock can gain is infinite, or potentially limitless. Unlike potential loss, which is capped at 100%, there is no limit to how much a stock can increase in value. Stocks can experience significant gains over time, with some companies seeing their stock prices rise exponentially.
For example, let's consider the case of Netflix. In July 1, 2011, Netflix stock peaked at $295 per share, but one year later, on July 30, 2012, it was down to $53.91 per share. However, in 2022, the stock had recovered to $199 per share. This demonstrates the range of possible returns and how a stock can potentially increase in value over time.
It's important to note that investing in stocks also carries risks, and individual stocks can fluctuate widely and even go bankrupt. However, there is no limit to their potential gains.