Stocks On The Stock Market

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There are thousands of stocks on the stock market. It can be a daunting task deciding which stocks to invest in. Typically stocks are broken into two general categories: growth stocks and value stocks. Growth stocks are typically considered companies that are expected to increase at rates above the average rate of the market. These investments typically do not pay any form of dividends, preferring to reinvest their earnings back into projects with the hope of helping the company to develop and expand even further. Growth stocks do not immediately produce results; most of the value is derived from the future earnings. In essence, you are investing in what the company will become instead of what the company is now. Value stocks are companies that are or close to full maturity. There is not a lot of room for growth with this stocks. Because of this, these stocks usually pay out dividends to make their investors happy. In essence, you are investing in what the company is now and what it will be in the future. The tendency for most new investors is to go for the growth stocks, because they seem attractive and provide the most potential for returns. These are the stocks that can soar up 100% in a year. While exciting, these stocks are also the ones that can plunge very quickly and cause panic in the market. So what should you be doing? Look for undervalue stocks. Investing in undervalue stocks is the ticket to make great returns year after year. Investing in undervalue

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