What are the different types of stocks?

When it comes to investing in stocks, there are a few different types to consider. Common stocks are the most well-known type of stock, and they entitle their owners to vote on company issues and receive dividends (a portion of company profits). Preferred stocks offer a fixed dividend payment and prioritize payouts over common stocks, but may not offer voting rights. Growth stocks are shares in companies that are expected to grow substantially in the future, while value stocks are undervalued by the market and may offer opportunities for long-term gains. Finally, penny stocks are securities that trade for less than $5 per share and are typically associated with higher risk and volatility.

This mind map was published on 17 May 2023 and has been viewed 137 times.