The Various Types of Stocks

Stocks come in all shapes and sizes. If you’re ready to learn about investing in stocks, one of the first things you will need to know is that there is more than one type of stock. How many? Investors have divided stocks into three major categories: company size, sector, and style, or type of growth pattern. And these categories come with their own lingo. Before you invest in stocks, it’s important to learn the different kinds of stocks as well as some of the unique language used to describe them.

In terms of stock, the size of a company is determined by multiplying the current share price and the total number of shares outstanding. This general “size” of the company represents the amount that investors believe the business is worth. Some companies are considered large-cap companies while others are referred to as small-cap stocks.

When it comes to style, investors categorize stocks by referring to them as either growth stocks, value stocks, or cyclical stocks.  A growth company is one that is growing, a value company can be purchased a lower rate than expected, and a cyclical stock is a company that manufactures or sells a product or service that isn’t in year-round demand, such as a steel company.

Finally, stocks are categorized into 10 sectors and various industries. You can analyze the health of a stock by determining its sector or industry. For example, the fastest growing sectors include finance, health care, and technology. Learning the various types of stock will help you make a better informed purchase and increase your chances of earning more revenue.

This blog was produced by a boutique real estate company located in Florida, called Plan B International. The firm provides high-end investment opportunities in Miami and South Florida. To learn more, please visit Planbinternational.com.