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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 MatchesMargin account (stocks)Margin account (stocks)A leverageable account in which stocks can be purchased for a combination of cash and a loan. The loan in the margin account is collateralized by the stock; if the value of the stock drops sufficiently, the owner will be asked to either put in more cash, or sell a portion of the stock. Margin rules are federally regulated, but margin requirements and interest may vary among broker/dealers. Screen 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. Countercyclical stocksCountercyclical stocksStocks whose price tends to rise when the economy is in recession or the market is bearish, and vice versa. 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. 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. Further Suggestionspenny stocksbearer stocks/shares defensive stocks stepped interest debenture stocks undated stocks Small capitalization (small cap) stocks Value stocks |
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