Markets

4 Types of Stocks to Consider

Blue chip stocks

These are organizations with solid foundations and decades or centuries of record. These are low development companies, but they will provide you with stable returns. These have reliable results and spending history. The Dow '… includes most of these stocks. Blue chip companies have reduced and stable development but they are safe places to park your hard earned cash and can provide surprising compound annual returns over several years.

Growth stocks

Growth companies are in great flavor. These are companies that show high increase in their turnover as well as share price. These companies are in the buzzing areas of the economy. Generally, they are not as old as the blue chip companies. The stocks can be very expensive in comparison with more stable companies. Growth stocks can have large ups and downs in their share price in a few dealing classes due to the large trade interests. Negative news related to these corporations can set back the price of these stocks by a vast amount.

Speculative stocks

These are companies with no actual fundamental logic. Their stock principles do not abide by conventional reasoning. The stock prices of these types of companies rise and drop a lot during single trading sessions. The stock prices are influenced by the information mill and can be manipulated by buying and selling the TLS share price rather than by the fundamentals. Speculative stocks are very risky and are excellent money losers. You need to avoid such stocks. This category of stocks includes stocks charged below.

Range bound shares

The prices of these stocks don't drop or rise by much. They remain variety bound within a -5% range. These types of companies have stagnant growth in profits. These are fundamentally stable companies with no actual thrust in profits. These stocks are used in trading on the technical basis. These stocks are used by investors to buy at the reduced support of the product range and are sold off by participants at the higher end of the product range. This makes a decent profit of 5% to -…% every five to -… days.

Different types of people spend money on different types of stocks. You can earn by investing in any of these kinds of stocks, you just need to choose what suits your needs.

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This article first appeared on GuruFocus .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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