Different types of stocks are available in the stock market and one should have the stock trading option information to choose the best option. Common stocks, preferred stocks, growth stocks, blue chip stocks, technology stocks, speculative stocks, low, mid or high stocks are some of the options. All these stocks are designed for different type of investors.
The common stocks, offers the share holder a certain level of ownership in the respective company. Each share gives the share-holder some dividend and the right to vote in the elections of the company. The preferred stock holders are not entitled to voting but they earn the dividend which is pre-decided and they enjoy the preferential services in this manner.
Companies which are very stable, growing very fast, dominating the respective market offer good future prospects are the bright ones offering growth stocks. These stocks attract the investor because there is the factor of making fast money from them.
The term 'blue chip' is related to those companies that are well established and their future prospects are also beyond doubt. The shares offered by these companies are called the blue chip shares and these shares are highly reputed shares. The blue chip shares hold a good record of investor satisfaction. The blue chip companies are also called the standard setter in the market and hold their place among the 30 indexes of the Dow Jones Industrial average. McDonald, Coca-Cola, IBM, etc, are the blue chip companies.
Next are the technology stocks that are offered by those companies which are operating in the high technology sector. These companies generally provide software or computers. These shares are also very profitable in today's market.
Speculative shares are the unpredictable ones and are offered by the companies listed on most stock exchanges around the world. These shares can provide large profits and can also cause heavy loss. These shares are meant for those investors who are very big players of the stock market and do not worry about taking risks.
Low-risk, mid-risk and high-risk stocks are determined according to the risk-factor related to them. The risk factor is evaluated by the investors and depends upon the individual investor perception. However it is also a fact that no two investors share the same perception in most cases and therefore what is low-risk stock to one could very well be high-risk to the other.