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Value stocks |
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Value stocksStocks with low price/book ratios or price/earnings ratios. Historically, value stocks have enjoyed higher average returns than growth stocks (stocks with high price/book or P/E ratios) in a variety of countries.Value stocks Similar MatchesBlue chip stocksBlue chip stocksCommon stock of well-known companies with a history of growth and dividend payments. 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. 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. Margin 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. Stepped interest debenture stocksStepped interest debenture stocksA debenture stock where the rate of interest payable to lenders is increased in stages over the initial life until a certain rate is reached. Thereafter, the rate remains fixed until the redemption date. This type of debenture is advantageous to an investment trust in that interest payments will be lower than the norm in the initial years (whilst the trust consolidates its growth) and above the norm in the later years (when it will be expected that the trust's assets can afford the extra interest). Further Suggestionsundated stocksScreen stocks penny stocks defensive stocks bearer stocks/shares growth stocks Countercyclical stocks |
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