There are many
different types of stocks. Here I list a few of the most
popular types to give you an idea of the availability.
Blue Chip Stocks:
Consist of the oldest most continuously profitable companies,
which usually pay a dividend. Some companies are more than
100 years old. Many of the 30 Dow stocks are included in
this definition. Also, these include some of your lowest
risk stocks, based on their history. Growth Stocks:
Are those that have or are expected to have superior earnings.
They usually don't pay dividends because they reinvest
their earnings for growth. Their share price can increase
dramatically while in their growth stage. When they have
a setback on bad news or some other problem, their share
price can also go down dramatically. You must be prepared
for these possible price fluctuations. Examples of growth
stocks from the decade of the 90's include Microsoft, Gateway,
Intel, Qwest, and Yahoo.
No Load Stocks:
can be purchase for reduced or no cost directly from companies.
Check the company's website to verify its participation
in this program. They will also give you information on
how you can invest directly with their company.
Speculative Stocks:
When a new investor thinks of stock as "risky",
speculative stocks are usually considered here. Your chances
of losing a lot of money are great, and your chances of making
a lot of money are small. Examples of speculative stocks
are stocks priced under $5 per share (see Stocks Glossary).
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