Types of Stocks
Types of Stocks in Stock Market: Features & Advantages
Stocks, also known as shares or equities, represent ownership in a corporation or company. When you buy stocks, you’re purchasing a small piece of ownership in that company. By owning stocks, investors become shareholders in the company. Shareholders typically have voting rights in corporate decisions, such as electing board members and approving mergers or acquisitions. The value of stocks can fluctuate based on factors such as company performance, market conditions, and investor sentiment.
Key Takeaways:
- Stocks can be classified into different categories based on company size (e.g., large-cap, mid-cap, small-cap), sector (e.g., technology, healthcare, finance), and geographical location (e.g., domestic, international).
- Investing in stocks involves risk, as stock prices can be volatile and subject to market fluctuations.
- Stocks are considered liquid assets because they can be bought and sold relatively easily on stock exchanges.
Table of Content
- Types of Stocks
- 1. Common Stock
- 2. Preferred Stock
- 3. Large-Cap Stocks
- 4. Mid-Cap Stocks
- 5. Small-Cap Stocks
- 6. Growth Stocks
- 7. Value Stocks
- 8. Income Stocks
- 9. Blue-Chip Stocks
- 10. Cyclical Stocks
- 11. Defensive Stocks
- 12. ESG Stocks
- 13. Penny Stocks
- 14. International Stocks
- 15. Sector Stocks