When it comes to investing, you have options. Take a look at the different types of investments that may be available for your financial plan.
Stocks
A stock is a share of a company. When you buy a stock, you have an ownership interest in the company. The many different kinds of stocks can be categorized based on:
Market Capitalization
This term means how much investors think the company is worth. ‘Small-cap,’ ‘mid-cap,’ and ‘large-cap’ are types of market capitalization that relate to the size of the company.
Growth or Value
Growth stocks have the potential for greater rewards but usually come with higher risk. Value stocks are focused on holding their value and growing steadily over time. Some stocks are also classified as blends of growth and value.
Industry
Stocks can be divided into sectors, such as energy, real estate and health care, among others. Typically, when stocks in one sector are doing well, stocks in another sector may be down.
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