Download Types of Stocks

Types of Stocks
Type of Stock:
Blue-Chip Stock
Stocks of a large, wellestablished and financially
sound company that has
operated for many years
Income Stock
The stock of a company that
pays higher-than-average
dividends compared to other
stock issues
Growth Stock
Shares in a company whose
earnings are expected to grow
at an above-average rate
relative to the market
Cyclical Stock
A stock whose price is affected
by ups and downs in the overall
economy
Defensive Stock
A stock that provides a constant
dividend and stable earnings
regardless of the state of the
overall stock market
Large-Cap Stocks
Companies with over $10 billion
worth of issued stocks and
bonds
Small-Cap Stocks
Varies, but generally a company
with less than $500 million
worth of issued stocks and
bonds
Penny Stock
A stock that typically sells for
less than $1/share, although it
can sell for as much as
$10/share
Examples:
Investing Strategy:
GE, Kellogg, 3M, Walmart,
ExxonMobil, IBM, Disney, Apple
Bear- blue chips are issued by the largest and
most respected companies that are usually
leaders in their industry; Think: “Would Warren
Buffett buy this?”
BP, Johnson & Johnson,
ConocoPhillips
Bear- income stocks remain relatively flat but
pay a higher-than average dividend; many
income stocks are also blue chips
Amazon, Facebook, GoPro,
Netflix, Actavis (Allergan), 3D
Systems
Bull- growth stocks have higher than average
potential returns and are likely to expand at a
much faster rate than other companies; usually
newer companies with entrepreneurial
tendencies
Bull/Bear- cyclical stocks can be bullish
investments if you try to time them by buying
before an upswing or shorting before a
downturn; cyclical stocks can also be bearish
investments if you hold them for a long period
of time to experience long-term gains
Bear- many defensive stocks are also blue-chip
or income stocks; won’t make you a ton of
money but are safe and reliable long-term
investments
Ford, Caterpillar, Lowes’, GM,
Priceline
ExxonMobil, Procter & Gamble,
Boeing
Apple, Google, Microsoft, Wells
Fargo
Galena Biopharma, Peregrine
Pharmaceuticals, CTI BioPharma
Terra Tech, MannKind,
Pharmacyte Biotech, Plug
Bear- large-caps are large, well-established
companies that secure and reliable; some largecaps can be bullish investments, however, as
they still have a lot of potential for growth
Bull- small-caps are unpredictable and are
issued by less-known, less-established
companies; much higher risk= higher potential
reward
Bull- penny stocks are very volatile and usually
have very large day-to-day or intra-day swings;
for this reason, they are a popular choice among
day traders