There’s a lot of random words when talking stocks.
Here are stock types explained:
1. Growth — stocks that are rapidly growing in revenue, but often don’t have profit (i.e. Tesla)
2. Blue Chip — large companies that have solid reputation (i.e. Apple)
3. Penny — companies that trade under $5 that are small and extremely volatile (i.e. RF Industries)
4. Speculative — almost like “Penny” that can potentially have high return potential, but don’t have to trade under $5 (i.e. Plug Power)
5. Dividend — companies that use their profit to pay shareholders (i.e. AT&T)
6. Defensive — companies that sell products that are always needed (i.e. Proctor and Gamble)
7. Cyclical — companies that sell products that are dependent on the health of the economy (i.e. Southwest Airlines)
So now you know, and now you can understand what your friends are talking about!
Make sure to share with a friend :)
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