Find Out the Various Kinds of Stocks and Which Would You Place Your Money In

Find Out the Various Kinds of Stocks and Which Would You Place Your Money In
If you are one person who likes to venture in long term investment, then stock are your great means. Just be aware though that quick cash is not readily available because this is not a quick money scheme. Of course you will get your money after some time not as quickly as you imagine. The basic advice if you want to earn money from stocks is that you buy from various firms with potential growth, meaning you do not put all your money in one place. To read more about stocks, click here.

Planning is a key to make money in the financial market and that includes deciding what kind of stocks to buy from what company. This means doing some research among different firms and the various stocks ready in the market before purchasing them.

The first stock we will mention is the common stock which, as the name suggests, the most common stock in the market. This kind of stock offers you a voting rights as a share-holder, depending on the number of shares you have, when there is a shareholder meeting in the company where you bought the stock. As a shareholder of this kind of stock, you have a potential of getting big returns, however, if the company goes bankrupt, you will also have the possibility of losing all of the money you invested. Get attached to us now and learn more about stocks
The next type of stocks are the preferred stocks and penny stocks that may represent a certain amount of ownership but you do not have any voting right in comparison to common stocks. One advantage of these stocks is that you will be receiving forever fixed dividends, and thus if there is liquidation, you are paid ahead before those investors holding the common stocks. With penny stocks, known as cent stocks, it is viewed as offering big returns for investors. For small public companies, penny stocks are under the classification of common stocks, and it usually trade to a low $5 and smaller.  

It is important to know the various categories that the company, where you will buy the stocks, will put their stocks before investing your money in them. One category is the size category which refers to market capitalization which is computed as share price multiplied to the total number of your outstanding shares. Companies that capitalize by tens of billions of money are considered to have stable stocks and they termed large-cap companies.

The style category is the next kind where it is divided into growth and value. A company expanding at above average rate usually issues growth stocks and you have to buy these at the initial stage so you can enjoy the growth. These stocks are risky though because the growth is fast as market is doing well but slows down as market dips. On the other hand, the value stocks have a steady growth but slow and they are traded at below average rate. Take a look at the information about stocks at
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