Saturday, August 17, 2013

Types of Stocks to invest in


When it comes to investing your dollars in the Stock Market it all amounts to what you truly want to get out of your investment. Having said that here is a list of the different types of Stocks you can investments and what benefits and drawbacks each if the sorts of Stocks have.

Penny Stocks
A penny Stock is just a Stock with a share price of less than $1. Most of the companies behind penny Stocks are start-ups and also have a great chance for high returns, but do to this will also be quite risky.

Dividend Stocks
Dividend Stocks also known as income Stocks offer investors a chance to create a steady source of income and the companies at the rear usually have a longstanding compilation of increases in revenue and are willing to share their profits using shareholders.

Blue Chip Stocks
Blue potato chips represent shares of major companies like Apple, Google, Toyota and much more huge corporations around the globe.

Growth Stocks
For investors to put their money with the full purpose of increasing their capital overtime certainly those looking to build additional streams involving turn to growth Stock, as the companies decide to put their profits in the business instead of sharing their revenue on their investors.

Defensive Stocks
As we all know the Stock Market is always going across and over time Stocks most of the time fluctuate, defensive Stocks are backed companies, which seem to do well even in times of crisis and bad overall economy, usually consisting of companies with in industries like food or entertainment as regardless of whether times are rough we still have to eat, drink and have some fun.

Cyclical Stocks
The last form of Stock you can invest in I want to shed some light from are cyclical Stocks. Unlike your typical defensive Stocks, Cyclical are quite the opposite doing well in either booming economies or maybe floundering ones. A few examples of businesses behind these Stocks had to be in industries like vehicles, travel and energy.

So as we discussed depending on the very goals they operate for your investments, each of these various kinds of Stocks can help you to achieve your financial goals every holding different levels from both risk and come back running.

The next step with an would be investor has to be determining what you want and how you want to get it.

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