Large well established firms who have shown great profitability and growth, dividend payout, and quality products and services are known as blue chip stocks. They are usually the leaders of their business, have been in existence for quite a while, and therefore are regarded as one of the safest investments. Blue chip shares are contained in the Dow Jones Industrial Average, an index composed of thirty companies that are leaders in their business groups. They are extremely popular with individual and institutional investors. Blue chip stocks entice tesla stock news sentiment investors who are interested in consistent dividends and growth in addition to stability. They’re seldom subject to the price volatility of other stocks and their share prices will generally be greater than other types of inventory. The downside of blue chips is that due to their stability they won’t appreciate as quickly as compared to smaller stocks that are upfront.
Penny Stocks are extremely low priced stocks and are extremely risky. They are usually issued by companies without a long-term record of stability or profitability.
The appeal of penny stock is their low cost. Although the odds are against it, even if the firm can get into a growth tendency the share price can jump quite quickly. They are normally favored from the speculative investor.
Income Stocks are inventory that normally pay higher than average dividends. They are well established businesses like utilities or telephone businesses. Income stocks are popular with all the investor who wants to own the stock for quite a long time and collect the dividends and who is not so interested in a gain in share price.
Sometimes a company’s earnings and growth potential imply that it’s share price should be greater than it is now trading at. These inventory are thought to be Value Stocks. For the most part, the current market and investors have ignored them. The investor who purchases a value stock expects that the market will soon recognize what a deal it is and begin to purchase. This would drive up the share price.