| For beginners, one of the most difficult
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| | easily. You have to gauge your own risk
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| aspects of understanding stock
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| | level. These are usually brand new
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| investments deals with the various types
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| | companies or unknown companies. This
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| of stock. There are several different
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| | category would include all those
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| types of stock to choose from.Income
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| | dot-coms.Preferred stock happens when a
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| stocks are issued by companies that are
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| | company issues different classes of
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| stable. The company will not usually
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| | stock. The company could have a common
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| reinvest a large amount of their profits
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| | stock and then have a preferred stock.
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| back into the company each year. The
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| | The preferred stock has a higher claim to
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| profits are instead distributed to the
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| | company earnings, such as dividend
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| shareholders in the form of a dividend.
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| | payments. The amount of the dividend
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| If you want dividend income and capital
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| | payment is fixed, unlike the common
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| appreciation, you should look towards
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| | stock, and will be paid before common
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| income stocks. But remember that
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| | stocks are. If you own a preferred stock
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| dividends will be taxed. Plus, the
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| | in a company that isn't doing well, you
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| dividend could go higher or lower each
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| | will still get your fixed payment. You
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| year.Growth stocks are issued by
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| | will also share in the assets in the case
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| companies that are looking to grow and
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| | of a bankruptcy before those holding
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| expand. There is usually no, or very
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| | common stock will.These are the most
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| little, dividend income from growth
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| | commonly thrown around stock types. You
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| stock. Many of the companies are just
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| | have probably heard of them around the
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| starting out in the business world and
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| | water cooler at work or on the news.
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| are actively reinvesting their earnings
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| | There are several other types of stocks
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| into their companies. Most advisors
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| | that are also available, including
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| consider growth stocks a good choice for
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| | convertible preferred stocks and
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| those looking to make a nice return over
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| | blue-chip stocks. It is essential that
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| a long period fo time. Annual returns
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| | you understand the different types of
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| usually run around 11% over ten years.
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| | stocks when looking to invest. They all
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| The idea is that growth stocks will grow
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| | have different benefits and drawbacks.
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| given time.A value stock is a stock that
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| | What type of stock you invest in depends
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| has gone down in price. It is usually
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| | on what you want to see from your
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| considered to be a good buy. Value stocks
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| | investment. Are you looking for a quick
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| are based more on the company's assets
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| | way to make a lot of money? Or are you
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| than the earning potential. The growth of
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| | wanting to invest money and simply let it
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| the company isn't the issue at hand with
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| | grow over time? Ask yourself these
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| a value stock. Investors buy value stocks
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| | questions when looking at what type of
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| for shares of a solid company at a good
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| | stock works for your financial
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| price and that in time the price will
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| | goals.Martin Lukac represents an
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| reflect the stability of the company.
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| | Internet consumer banking marketplace. is
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| Then the price of the stock will go
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| | a destination site of personal finance,
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| up.Speculative stocks are like the new
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| | investing, taxes and mortgage rates.
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| stocks on the block. They are the
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| | provides mortgage guides and financial
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| riskiest stock available. You can either
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| | rates and information.
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| make a lot of money or lose it all quite
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