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Blue chip stocks |
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Blue chip stocksCommon stock of well-known companies with a history of growth and dividend payments.Blue chip stocks Similar MatchesScreen stocksScreen stocksTo analyze various stocks in search of stocks that meet predetermined criteria. For example, a simple value screen would sort all stocks by their price-to-book ratio and pick the stocks with the lowest ratios as candidates for the value portfolio. Growth stocksGrowth stocksStocks whose earnings have grown at an above average rate over a number of years and which are expected to continue to grow at a high rate for some time to come.Growth stocks usually trade on higher P/E ratios than non growth stocks, but their share prices also tend to be more volatile, which means they are inherently more risky than other stocks. If their growth falters, the market may punish them by marking down the share price severely.Because their primary attraction is capital growth, growth stock companies are often not expected to pay dividends. The reasoning is that the shareholders are better served by the money being invested back into the company. This is fine if the company delivers on its growth promises, as increases in earnings will, if the P/E stays the same, result in higher share prices. But if the company fails to deliver on its promises, investors will not only miss out on the capital appreciation they expect, but won't even have dividend income to compensate. Old economy stocksOld economy stocksStocks in sectors unrelated to telecommunications, the internet, software or any other technology-driven industry. 'New economy' stocks are seen as offering the most potential for capital growth. Undated stocksUndated stocksFixed interest stocks which have no redemption date. Small capitalization (small cap) stocksSmall capitalization (small cap) stocksThe stocks of companies whose market value is less than $1 billion. Small-cap companies tend to grow faster than large-cap companies and typically use any stocks for expansion rather to pay dividends. They also are more volatile than large-cap companies, and have a higher failure rate. Further SuggestionsValue stocksMargin account (stocks) bearer stocks/shares stepped interest debenture stocks penny stocks Countercyclical stocks defensive stocks |
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